7 Investing Principles -The fundamentals you need for investing success.

1. Establish a financial plan based on your goals

Be realistic about your goals

Review your plan at least annually

Make changes as your life circumstances change

2. Start saving and investing today

Maximize what you can afford to invest

Time in the market is key

Don’t try to time the markets—it’s nearly impossible

3. Build a diversified portfolio based on your tolerance for risk

Know your comfort level with temporary losses

Understand that asset classes behave differently

Don’t chase past performance

4. Minimize fees and taxes

Markets are uncertain; fees are certain

Pay attention to net returns

Minimize taxes to maximize returns

5. Build in protection against significant losses

Modest temporary losses are okay, but recovery from significant losses can take years

Use cash investments and bonds for diversification

Consider options as a hedge against market declines—certain options strategies can be designed to help you offset losses

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6. Rebalance your portfolio regularly

Be disciplined about your tolerance for risk

Stay engaged with your investments

Understand that asset classes behave differently

7. Ignore the noise

Press makes noise to sell advertising

Markets fluctuate

Stay focused on your plan

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