Investing Rule #7: Ignore the Noise

As you’re learning how to invest, one important skill to master is ignoring all of the noise. Ignore the news. Ignore your friends. Ignore everyone. Make a plan. Put that plan into action. Make it automatic. Then forget about it. Seriously, this is the secret to investing success. People tend to pour money into stocks in […]

Investing Rule #6: Make It Automatic

After you’ve set up your investment account, it’s time to remove the human element from the equation. As always, you should do what it can to automate good behavior. If you plan to do all your investing through your employer’s retirement plan, it’s easy to get started. Contact HR to have retirement contributions automatically taken out […]

Investing Rule #5: Keep It Simple

Index funds offer another great advantage for individual investors like you and me. Instead of owning maybe twenty or fifty stocks, an index fund owns the entire market. (Or, if it’s an index fund that tracks a specific portion of the market, they own that portion of the market.) For example, an index fund like Vanguard’s VFINX, […]

Investing Rule #4: Keep Costs Low

The biggest drawback to mutual funds is their cost. With stocks and bonds, you usually only pay when you buy and sell. But with mutual funds, there are ongoing costs built into the funds. (You don’t pay these costs directly; instead, they’re subtracted from the fund’s total return.) Some of these costs are obvious, but others […]

Investing Rule #3: Spread the Risk

While the stock market as a whole returns a long-term average of ten percent per year, individual stocks experience drastically different fortunes. In 2013, the S&P 500 index grew 29.60%. But some of the 500 companies that made up the index did much better than others. Stock in Netflix (NFLX) soared 297.06%. Best Buy (BBY) […]

Investing Rule #2: Think Long-Term

A lot of people have the mistaken idea that investing requires following daily stock market movement, then buying and selling stocks frequently. That’s how it’s done in the movies, but you know what? People who invest like that actually tend to make less than the people who do nothing. I’m not making this up. Smart […]

The Best Car Insurance Companies for 2020

The best car insurance companies give their customers more than just coverage they want at a reasonable price — merely good companies can do that. On top of that, the best auto insurance companies provide a customer-first experience from quote to claim, including a headache-free way to manage policies and make payments. NerdWallet’s editorial team […]

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