9 tips for sane and successful  stock investing

1. Spread The Risk

One rule of thumb is to subtract your age from 100 and invest the result as the percentage of your savings to place in stocks. If you are 40, for example, you would keep 60% of your portfolio in stocks and. And 40% in other investments. Some recommend using 110 to 120 instead of 100.

2. Buy Mutual Funds

Stock mutual funds allow you to own a small slice of a bunch of different companies because their diversified mutual funds offer more safety over individual stocks.

3. Use Index Funds

There are two main Types of mutual funds when it comes to how they are managed: actively managed mutual funds and passively managed mutual funds. Commonly called index funds. Active funds tend to come with heftier fees. And index funds tend to have much lower expenses.

4. Don’t waste money on fees

Don’t let mutual fund fees portfolio management fees or trading fees. Eat up your capital. For most of us, these services just aren’t worth it.

5. Rebalance Yearly

Suppose you have decided to put 60% of your savings in the stock market. As time goes on, some of your investments will grow faster than others. And some may lose value. This will causeway your 60% stock allocation to change.

6. Keep emotions out of investing

One common rookie investor mistake is reacting emotionally to stock market ups and downs. If you pulled out of stocks after the 2008 crash, for example, you may have missed the gains from the bull market that followed. Remember, you are in this for the long haul.

7. Stay the course

· Having workplace retirement fund contributions deducted automatically from your paycheck, · Setting up bank accounts such that money is routinely moved into investment accounts automatically, · Rebalancing your investments annually.

8. Get every bit of your company’s 401K match

Suppose your employer matches your contributions to your 401K account for dollar, up to a maximum of 4% of your $4500 monthly salary. That’s $180.00. You can get free every month -. $2,160. Every year. of course, to earn the company’s match, you’ll need to put $180.00 in the account every month too.

9. Contribute. As much as you can

To get an idea of how much money you should be saving for retirement, use a retirement saving calculator. Try AARP S, for example, or search online until you find 1. Or two you like.

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Happy Investing