Bellmore Group Management Services, Tokyo Japan Become a Better Investor In 2017 | страница 2

Scheil emphasizes that deciding to invest beyond a 401 ( k ) or IRA should only be considered when you have reasonably maxed out your retirement accounts . He says , " This is because of income taxes . You cannot pass up deferred tax or even free tax benefits . Firstly , plan and decide how much you need to invest , where the [ extra money ] is coming from ( a bonus , regular income , asset sale , inheritance , gift , savings account money , etc .), when you may have to use it or when you want the money , and how much risk you can withstand .”
2 . Avoid focusing on daily market fluctuations .
“ New investors often focus on daily market cycles and timing the investing process . You will never enter at exactly the right time or exit at exactly the right time . Averaging dollar cost or investing at regular periods will tend to balance out the highs and lows ,” says Scheil . The guiding principle is that if you are between 25 and 35 , the market movements on any particular day will not overly affect the retirement money you expect to get 30 years after .
3 . Before considering other investments , first understand completely your present portfolio .
Scheil offers a diagnostic list of questions to assess your situation : “ When you have extra money to invest , I recommend a quick evaluation of your current portfolio . Do you have a balanced diversification ? Does your investment standing address your set goals ? Do your investments perform reasonably against actual risks and the market conditions ? Knowing the exact answers to these questions will help you decide if you should use your extra money into your existing investments .”
4 . What you might actually need is not opening another account .
Regarding three various kinds of investments , Scheil gave these comments ( These are his personal views ; other experts may have other opinions , obviously .):
To open or not to open another account - “ You need a new investment account only if it is has a different name on the account or has a different tax status .”
To invest or not to invest in a particular business - “ I recommend diversification only if you personally own and manage the specific business you invest in .”
To invest in real estate or not - “ Investing in real estate is advantageous in a portfolio to serve as an optional investment with a stocks portfolio , up to a certain proper amount . Owning real estate yourself is great as well ; however , it might end up difficult to sell and burdensome to handle .”
5 . If you are considering new investments , determine what will succeed in 2040- 2050 .
According to Scheil , the most appropriate choice for millennials wanting to improve their investing potential is to “ remain in the stock market for the long-term and consider buying during market dips ”. Likewise , he strongly suggests that we think hard about what will gain long-term value when dealing with stocks .
“ Be guided by this simple test : What will be very valuable in the year 2050 ? What will earn a lot from now up to 2050 ? Renewable energy , bio-technology , goods and services for the