Tuesday, 9 November 2010

My favourite method for selecting investments (Part 2 of 4)

The great majority of the population cannot afford devoting hours on end to following the markets. What many of us want is to achieve reasonably good results with a minimum of involvement, but without relinquishing control of our assets. No one should trust other people's recommendations blindly.

My suggested method combines four elements that are available to most individuals: a monthly income from their jobs or professions, the possibility to open a brokerage account, internet access, and the willingness to devote a few hours per month to follow their finances.

* Nobody can make for you the commitment to set aside regularly part of your revenue in order to secure your future. This first step is the hardest to take, since frequently, man sees old age too far away. As a general rule, the sooner a person decides to take responsibility for his finances, the better his economic prospects.

To be continued in Part 3

[Text: http://johnvespasian.blogspot.com]

[Image by Gilles Gonthier under Creative Commons Attribution License. See the license terms under http://creativecommons.org/licenses/by/3.0/us]