Posts Tagged ‘Reallocate’
Words to Live by to Invest Well
If reading investing books isn’t your thing, there are seven words that can sum up how to invest well. Those words, offered by Michael Pollan, are:
Index (mostly). Save a ton. Reallocate infrequently.
The book I’m reading now, Bogleheads’ Guide to Investing, and most investing/personal finance information sources I’ve read point readers in that direction. Index Funds, with lower operating expenses and low portfolio turnover, have generally kept up or even out performed actively managed accounts. If Warren Buffett recommends Index Funds, you better listen! Saving a ton is just common sense. You can’t build wealth if you spend more than you earn. Lastly, Reallocating infrequently (every 6 to 12 months) will discipline you to stick to your guns with your investments, keeping you from impulsive decisions and needless costs. You can read more financial basics offered by Pollan in the full article - Five Basics for Building a Solid Financial Future
