Here's part 2 of a series from Money magazine that lists their 10 New Years Money Resolutions:
Resolution 2: Invest smarter
The critical determinant of how well your portfolio performs over time is not the specific stocks or funds you pick; study after study shows that it's your mix of stocks, bonds and cash. The good news: Getting the right mix is not rocket science.
1. Lay the groundwork.
2. Follow the formula.
3. Apply the rules.
4. Take it further.
My thoughts:
1. I'm an "aggressive" investor based on Money's definition. I'm at about 90% stocks. (Maybe I'm a bit too aggressive.)
2. As you know, I'm a big fan of index investing. To see other posts about indexing, see these links:
- Where the Pros Stash Their Own Dough
- The Case for Indexing
- Don't Give Up on Index Funds Yet
- Do You Have Enough Time to Invest Like You Want To?
3. As posted earlier, I need to simplify my investment portfolio. When I do this, I'll also review it to make sure I have my investments divided properly among asset classes.
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