Thursday, November 4, 2010, PM | 3 Comments
Build your wealth the Wall-Street way slowly by diversifying your investment portfolio. First off, make sure your strategy for retirement savings is in place, and your debt is under control. Then it’s time to start thinking beyond 401(k) and focus on life’s other short- and long-term goals. You start looking for opportunities to expand your investment and portfolio strategy to save for multiple goals you might have, for example, kids’ college, vacation and other such goals.
Keep saving and investing for retirement…
However, it’s important that you keep saving and investing for retirement. Be sure to take full advantage of your 401(k), including catch up contributions if you are age 50 or over, and contribute to an IRA and other Tax-advantaged investing for a lifetime.
Keep your savings goals intact…
Your next step is to identify and prioritize your short- and long-term savings goals. For example, you might want to save for buying a car, home repair or renovation, college fund or investing in a second home. Talk to your financial adviser to help you with your savings goals.
Make sure your portfolio is on target
Whether you seek the help of financial advisers or do-it-yourself, don’t fall asleep at the helm, so to speak. Take an active role in rebuilding your portfolio.
Other important strategies to consider
As you move on to protect your wealth, it’s very important to develop a plan and follow it through. Visit your plan frequently on a regular basis:
You should set aside at least six months of expenses in cash. You can do that on a weekly or monthly basis while keep on investing the rest.
Five major types of insurance you must review every year so that you and your family are adequately protected. [5 insurance policies you must have.]
Review your will regularly and should be updated for your financial life changing event. Make sure your financial plan is in place to provide for your loved ones. [A Will can protect and preserve your assets.]
Appointing your beneficiaries is as important as writing up a will. [Tips For Naming Beneficiaries When Buying Life Insurance.]
In a Nutshell
The most important step you can take is to bring debt under control. You are paying many times over in interest than you are getting for savings.