Reflecting on one’s investing process and habits is a valuable learning process. First, you can seek to understand what your current investing habits are. What can you improve on? What are you not happy with? By reflecting on these 12 questions, I hope that we can all aim for a more prosperous new year.
The new year in less than a week will be a fresh start. So, now’s the perfect time to make the New Year’s Resolutions for 2017.
Here are some questions to get you started to shape your resolutions.
First, seek to understand your current investing habits so that you can see where to improve if you’re not happy with it.
How much are you saving each month for investing?
The September 2014 Census Bureau revealed that the median household income in the U.S. was almost $52,000. If 10% of that was saved, $5,200 per year or about $433 per month can be invested.
If it costs you $10 to trade, perhaps you are only willing to pay a maximum of 1% for the trade, so that you’d save up $1,000 before investing in a stock.
By investing $5,200 a year compounded annually for a conservative market return of 7% in a market-wide fund such as the S&P 500 ETF (NYSEARCA:SPY), the results will be as follows.
|Year||Amount You Saved||Portfolio Total|
If you’re unsatisfied with these projections, you can increase your savings rate, aim for higher returns, or work longer to save more.
How much are you allocating to cash?
Investors who have a stock-intensive portfolio…
Unfortunately, I have maxed out the number of words I can include in this excerpt (that’s largely) from my Seeking Alpha article. The 12 questions and answers can be found at my full article free at: 12 Questions For Your Investing New Year’s Resolutions
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Disclaimer: I am not a certified financial advisor. This article is for educational purposes, so consult a financial advisor and or tax professional if necessary before making any investment decisions.
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