Some Conventional Wisdom on Investing

  • This article cannot tell you which stocks to pick, but you might consider the following advice from “the experts”:
  • Diversify your portfolio. Don't keep all your money in one place, or even in one type of investment. Put some money into longer term, higher yielding vehicles. Keep a portion liquid.
  • Consider the risks. Generally, the higher the interest rate or return offered, the greater the risk of losing your investment. Assess your total financial picture. Never invest more than you can afford to lose. Retirees should invest more conservatively than those with many years until retirement.
  • Let the market be your guide. Income taxes are undoubtedly an important factor in your investment decision-making, but don't let taxes be the tail that wags the dog. Consider what investment strategies and timing are best for your financial picture, then ask your tax adviser what effect taxes will have on your planning.


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