There is no better time than now to lay out your investment plan for 2014 and beyond. Here are a few suggestions.
1. Follow The Golden Rule of Investing and this simply means, save as much as you can as early in life as possible.
2. Develop a Strategic Asset Allocation plan as shown in Dashboard after Dashboard.
3. Establish a Risk Reduction model. The two highly recommended are: a) Stay away from securities that are under performing the SHY ETF and b) Sell ETFs that are priced below their 195-Day Exponential Moving Average.
4. Follow the development of one of the portfolios on this blog and when you feel comfortable with one, watch it carefully. There is a good chance no portfolio will exactly fit your requirements and that is fine. Adjust the asset allocation plan to fit your personal financial needs. Stay disciplined.
5. Diversify across the globe.
6. Diversify using low correlated ETFs. The Cluster Weighting Momentum model provides direction for seeking and finding low correlated ETFs.
7. Concentrate on index ETFs rather than spending time analyzing and picking individual stock.
As Buffett says, the first rule of investing is to not lose money and the second rule is – don’t forget the first rule.