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Simple Steps to Successful Investing

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http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing

Simple Steps to Successful Investing

There are many times in life when the “KISS” approach is the best. (KISS = keep it simple, stupid!) Successful investing is one of them. The vast majority of investors have a “day job.” That is to say, they work at something other than managing their investment portfolio. That means that most of us need to follow a few simple steps to successful investing.

Simple Steps to Successful Investing

Take advantage of 401K’s, IRAs, and other tax deferred investment vehicles

Invest in your home
Pay off credit card debt before any other significant investing

Keep your investment vehicles simple
IRA’s and 401 K’s

An IRA is an account that you create with a financial institution such as a bank or stock broker. It gives you a way to save with the growth of you investment being tax free or tax deferred.

Issues such as whether you use a traditional IRA or a Roth IRA are important but the most important part is to have your investments increase in value with being taxed until you cash out.

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Simple Steps to Successful Investing

  1. 1. B y w w w. P r o f i t a b l e I n ve s t i n g Ti p s . c o m SIMPLE STEPS TO SUCCESSFUL INVESTING
  2. 2. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing There are many times in life when the “KISS” approach is the best.
  3. 3. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing (KISS = keep it simple, stupid!) Successful investing is one of them.
  4. 4. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing The vast majority of investors have a “day job.”
  5. 5. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing That is to say, they work at something other than managing their investment portfolio.
  6. 6. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing That means that most of us need to follow a few simple steps to successful investing.
  7. 7. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing Simple Steps to Successful Investing
  8. 8. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing •Take advantage of 401K’s, IRAs, and other tax deferred investment vehicles •Invest in your home •Pay off credit card debt before any other significant investing •Keep your investment vehicles simple
  9. 9. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing IRA’s and 401 K’s
  10. 10. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing An IRA is an account that you create with a financial institution such as a bank or stock broker.
  11. 11. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing It gives you a way to save with the growth of you investment being tax free or tax deferred.
  12. 12. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing Issues such as whether you use a traditional IRA or a Roth IRA are important but the most important part is to have your investments increase in value with being taxed until you cash out.
  13. 13. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing A 401 K is similar to an IRA but it is sponsored by your employer.
  14. 14. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing A common benefit is that your employer matches your contribution each year.
  15. 15. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing Your money grows without being taxed over the years and is only taxed when you withdraw it during retirement when you income is less and your tax bracket is lower.
  16. 16. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing Buy Your Home instead of Renting
  17. 17. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing Interest on your home mortgage is deductible on your income tax.
  18. 18. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing This law is meant to promote home ownership and economic stability.
  19. 19. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing Simple steps to successful investing include owning your own home.
  20. 20. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing Pay Off Credit Card Debt
  21. 21. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing In our article featuring tips on how to start investing we mention paying off credit card debt.
  22. 22. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing Before you start putting money into stocks you need to pay off your credit cards because the interest you pay on those is more than a beginner can expect to make on his money in the market.
  23. 23. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing In fact, the interest paid on credit card debt is greater than many professional investors can reliably make year after year.
  24. 24. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing The first simple step to successful investing is to pay of the credit cards.
  25. 25. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing The Minimalist Approach to Successful Investing
  26. 26. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing One of the simple steps to successful investing is to take a minimalist approach as suggested in an article by CNBC.
  27. 27. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing Life is complicated enough. The number of investment choices in a typical 401(k) plan – about 25, according to a recent report from the Investment Company Institute – is proof.
  28. 28. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing If you have a current 401(k), an individual retirement account or two, and perhaps a 401(k) from a former job, you may have money in dozens of funds.
  29. 29. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing That’s not even factoring in an individual retirement account and a brokerage account.
  30. 30. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing Across these accounts, you may be duplicating where your money goes.
  31. 31. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing But do you really need to choose that many investments?
  32. 32. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing Their suggestion is to use three index funds that track US stocks, bonds, and international stocks.
  33. 33. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing They also suggest a mix of taxable, tax free, and tax-deferred accounts.
  34. 34. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing Active versus Passive Investing
  35. 35. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing Over the years more and more investors have found that they are unable to successfully time the market.
  36. 36. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing And, many find that their stock picks, bond purchases, and real estate investments are not beating the return on an index fund that tracks the S&P 500.
  37. 37. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing Thus, many have moved to passive investing.
  38. 38. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing If you want to be an active investor and believe that your investment choices will outperform a set of passive investments, you need to spend the time necessary to track your investments and do research for picking new ones.
  39. 39. http://profitableinvestingtips.com/bond-investing/simple-steps-to-successful-investing If you simply do not have the time to do this, consider the simple steps to successful investing that we suggest.

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