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TAKE STOCK IN YOUR STOCKS

FOLLOW THESE TIPS FOR LONG-TERM FINANCIAL SUCCESS

YOUR INVESTMENTS, like newborn babies, need to be closely monitored if they are to thrive. Fortunately, taking charge of your investments doesn’t have to be daunting.

Here are five tips to help keep your investments healthy.

1 CREATE A REPORT

In order to gain control over your investments, it’s essential to know where you’ve been, where you are and where you’re headed. One easy way to do this is to create a spreadsheet each quarter with the current value of all your manageable assets, such as bank and brokerage statements, cash on hand, etc. It is important to note that this is not a net worth statement and, therefore, should not include all assets and liabilities.

2 FOCUS ON WHAT YOU CAN CONTROL

In this age of information, instant answers and market volatility, we get caught up in the incessant flow of “news” and forget that true investing success comes from building a solid financial foundation, having a plan and sticking to it. Build your portfolio around well-diversified investments, and track their performance so that you will know if and when it is time to make adjustments.

3 SET SPECIFIC GOALS

Your investment goals must be specific if there is to be any chance of accomplishing them. They should include concrete and measurable criteria and be realistic and attainable. While you should avoid any goal that is too high to be realistic, you must set goals high enough to make the effort worthwhile. And, your goals should also be measurable.

For example, a goal to “rebalance my 401(k)” should specify an attainable, measurable, specific target, such as increasing the bond ratio from 10% to 15%. By knowing where you stand at any point, you’ll know what needs to be done, if anything, to keep you on track.

A goal should also be timely. By setting a specific time for accomplishment, such as year-end 2015, you generate a sense of urgency that helps to keep the goal on the “front burner.”

4 PRIORITIZE YOUR GOALS

Once you have set specific and reasonable goals, rank each one in terms of importance and urgency. Keep in mind that your goals may have to be adjusted at any time. The investment world is in a constant state of flux, and some of those changes may call for another look at your personal targets.

5 DON’T LET EMOTION GET IN THE WAY

All investments involve some risk, and many of us are vulnerable to allowing our fears to overrule common sense when it comes to money. Market downturns, even recessions, are relatively common in our society and are a normal part of a free economy. Don’t make rash decisions based on temporary setbacks; instead, focus on your long-term goals.

FINANCIAL SUCCESS

Taking control of your investments calls for establishing carefully thought-out, specific steps and sticking to them. The above suggestions will help to put you in charge of your financial life. OM

Information in this article is provided for educational and reference purposes only. It is not intended to provide specific advice or individual recommendations. Consult an accountant or tax advisor for advice regarding your particular situation.

WILLIAM J. LYNOTT is a freelance writer who specializes in business management and personal and business finance. Visit www.blynott.com, or to comment on this article, visit tinyurl.com/OMcomment.