The New Rules of Money
Photo Credit: fbi.gov
Investing and saving for wealth just doesn’t work the way it used to do. You can’t count on using old investing methods and expecting the same level of success that we’ve enjoyed in years past. The following article from Forbes lists 20 new
rules of money. Here are the top 5 according to Forbes.
1. Buy and hold at your own risk – Buying a stock or fund and expecting to hold it for a long period of time can hurt your wealth accumulation efforts.
2. Diversification won’t protect you – The S&P 500 fluxed 57% during 2007-2009 and every market sector was affected.
3. Low P/E doesn’t equal value – The accounting dependent fundamentals were a trap during the financial crisis.
4. Taxes are an investing strategy – Experts are predicting equity returns will only average 6% per year, so every dollar you can save on taxes counts.
5. Learn to profit from volatility – Try to turn volatility into profits.
Read all 20 here on Forbes.com
