Develop Your Own Investment Plan
Part 2

1. Determine the Kind of Investor You Are:

What are your goals for investing and how do you feel about risk?

2. Decide how You Will Allocate Your Investment Money:

What portion of your money will you invest in stocks? In bonds? In mutual funds? How much do you want to keep in liquid investments? Determine how much you need to invest, and how to make these allocations.

3. Select Your Investments:

Choose them cautiously and create a broadly diversified portfolio, so you can minimize and spread your risk over a variety of investments.

4. Follow up on Your Investment Plan:

Once you've launched your investment plan and you have your portfolio, make sure it continues to reflect your goals and keeps working its hardest for you.

5. Monitor the Progress of Your Investments:

Regularly review your portfolio to determine if the value of your investments is increasing. Compare your returns with similar investments and investigate all the facts.

6. Review Your Financial Circumstances and Objectives at Least Twice a Year:

By doing this, you can verify that your investment plan still meets your needs and pinpoint where, when and which changes may be necessary.

7. Make any Necessary Adjustments to Your Portfolio:

Relocate money among your investments to reflect any changes in your investing approach.

8. Patience Is a Virtue:

Invest for market returns year in and year out. Maintain the discipline to hold onto or add to investments through down markets as well as up markets.

9. Cash Is King:

Always keep sufficient funds on an "instant access account" to meet any sudden emergencies, e.g. repairs to your home, a sudden medical expense, or etc. This may be obvious to you but from my experience I can tell you that the number of people who fail to keep this simple rule is truly amazing!

10. And Above Everything Else:

Choose a stockbroker you can trust ...

A stockbroker with a proven reliability!

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