As we are turning the page into 2015, it is worthwhile establishing or reexamining our investment goals. Many on the list are not new to readers of ITA Wealth Management. So let’s begin.
1. Lay out an investment plan if you have not already done so. Write it down. Most ITA readers have a plan in place. Now stick with it.
2. Pay off credit card debt. This seems to be the current trend. Keep at it.
3. Establish a savings plan. Follow the Golden Rule of Investing.
4. Make the decision whether you want to manage your own money or pay a fee based advisor. A Platinum membership is far less than the cost of a professional advisor.
5. Seriously consider whether you are better off using index vehicles or picking individual stocks. Do some serious research on this topic. Read Richard Ferri’s book, “The Power of Passive Investing” if you have the slightest question. William J. Bernstein is another highly recommended author.
6. Read several of our Top Ten Investment Books as you continue your investment education.
7. Turn off CNBC and other financial advertising services. They are financial entertainment and are not designed to enhance your portfolio.
8. Think through your asset allocation plan. Keep it simple as you learn. You might even begin with the four asset class portfolio; U.S. Equities, Developed International Equities, Emerging Markets, and U.S. Treasuries. The ETFs are: VTI, VEA, VWO, and TLT.
9. Learn how to monitor your portfolio. We recommend taking the time to learn how to use the TLH spreadsheet. There is a lot to learn.
10. Invest for the long run. However, pay attention to portfolio risk. Learn how the ITA Risk Reduction models work. The ITA Risk Reduction (ITARR) model is another example of how portfolio risk is managed.