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1. NO ONE CARES more about your money than YOU DO. Realize this now, and never forget it. Learn to separate fact from fiction and formulate a clear and logical investment strategy supported by empirical evidence. Ignore Wall Street hype. 2. Active Management is a loser's game. Over 94% of a given portfolio's return is determined by asset class selection. By simply building the proper mix of institutional asset class funds, you will consistently outperform the "so called" professionals (and at a fraction of the fees, taxes and expenses). 3. Sophisticated institutions have rapidly converted trillions of dollars to structured asset class investing. These institutions have the resourses to uncover and employ any firm or strategy they choose. The most sophisticated investors in the World choose asset class investing. You should too. 4. Don't let your appetite for excitement destroy your nest egg. Create your serious wealth with an asset class strategy. Establish an "entertainment" account with 5 or 10 percent of your assets. 5. Don't confuse brains with a bull market. How many of us were geniuses in the 90's??? Take another look at the Warren Buffett quote on my home page. 6. Write an INVESTMENT POLICY STATEMENT. A qualified Registered Investment Advisor can help you with this. An ISP will keep you within your specified risk parameters and greatly enhance your investment experience. 7. Diversify! Most investors (and many advisors) misunderstand this concept. I've rebuilt portfolios for new clients that owned dozens of securities and 5 or 6 different professional money managers. In one case, 70% of the equity exposure was large cap growth. Improper diversification is a recipe for disaster. 8. Never pay commissions. Fee only advisors remove the conflict of interest. It is very important to make sure your advisor is not earning both a commission and a fee. A fee only advisor should be interested in only one thing... your well-being! 9. Rebalance at least annually. Often ignored and extremely important. This practice assures adherence to your target asset allocation. Rebalancing frequency should be written in your Investment Policy Statement. It's tempting to let the "hot" sectors run. This will lead to over-allocation to particular asset class and will eventually lead to great disappointment. Remember the great growth stocks of the nineties??? 10. Enjoy life!!! Implementing a sound long term investment strategy will take the "worry" out of investing. And, here's an Eleventh Tip:Learn how our services can help you!
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