Start as early as you can in your investment game. Time is a great multiplier. If you make sound investments early in your life, you are sure to make some money later on with no exceptions. The rules here are rules of investment that help you make more money and grow your investments hundreds of time multiples.
These golden rules of investment are no secret. they have been around in business families for ages and they hand down to each other generation after generation. Knowing them is first step. real gold lies in following these golden rules.
1. Never Be Afraid of Risk
One of the biggest mistakes investors can make is allocating too much of their investments in cash or bonds. A good rule of thumb is to subtract your age from 100. Allocate that % of your portfolio to stocks.
2. Never Invest All In Your Employer’s Stock
If you can get stock in your company subsidized, by all means invest as much as you can. That is free money. But don’t overweight your portfolio with company stock. What happens if your company goes under? Not only is your job income gone, but your investment portfolio is shredded as well.
