July 20, 2012

Investing Truths

Thanks to the Networth Advisory Group (fee-only financial planners) for this list of investing truisms which includes:
Time is the most important factor relating to an investment plan’s success.  There is no substitute for starting early and maintaining regular contributions to your investment accounts. 
Individuals saving 10% of their gross income are often on the bubble when it comes to meeting their retirement goals. People saving 15% are almost always on track.
Choosing the right allocation between stocks, bonds, and cash is the most important investment decision you can make.
Diversification among asset classes is the second most important factor leading to investment success.  Don’t put too many eggs in one basket. Remember, you can also be diversified from a tax perspective by having taxable accounts, tax-deferred accounts (IRAs and 401Ks), and tax-free accounts (Roth IRAs, Roth 401Ks).

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