4 Commandments Of Investing For Seniors
Congratulations for making it past the 65 years-old mark. Having been around for many decades, I bet you have learnt to follow life’s commandments such as the Biblical commandments. Such commandments are meant to be guidelines that keep individuals out of trouble as they along the life’s highways which are ever full of bad rivers, blind turns, and potholes. The world of investment, just like life, also has a rough highway that is punctuated by dishonest companies, scams and scandals. You might find yourself in the wrong side of the investing world if you don’t observe some basic commandments. Without much ado, here are some of the greatest commandments of investing that all senior citizens who want to succeed in their investments must follow.
- One shall set clear investments goals
Without a set of clear investment goals or a clear purpose to direct or direct your investment strategy, then you should not invest. It is that simple. If you do not have a well-defined destination, then the many types of, flavors and styles of investing available may lead you nowhere and you will be lost in the middle of nowhere.
- One shall be patient
You have heard it many times that patience is a virtue. In fact, patience pays for itself in the world of investing. The market is going to dip sometimes. When this happens, you should be patient and avoid panicking. We are not saying that you should hold on to an investment even if the signs are clear that you should opt out. However, it is a good practice to take your time and observe the market instead of rushing into making decisions based on a temporary bumpy ride.
- One shall do due diligence
This commandment demands that you get a medicare advantage plans 2019 should never invest in what you don’t understand. By doing due diligence, you will be expanding your general investment knowledge. Before rushing into any investment strategy, be sure to go through a due diligence process. Someone’s recommendation, time deadlines, and your own belief should not be the reasons for you to skip due diligence.
- One shall diversify
You should never place all your eggs in just one basket. Otherwise, you will lose all of them in case the basket breaks of falls. Instead of investing all your money in one investment, you should diversify so that you can mitigate the risks and increases your chances of success. However, you should not spread your money in so many investments. Otherwise, your investment returns will become average.