52 Simple Ways to Manage Your Money – 29. One At A Time – Single Issue Stocks And Bonds
What it is…
Purchasing individual shares of stocks or bonds as a result of your own research or the advice of a financial advisor.
How It helps…
Potential return can be higher than taxes and inflation.
Not recommended for the novice investor.
Key items to look for…
Your expertise in doing adequate research.
Substantial amount of money to be invested in order to adequately diversify your holdings.
Risk factors.
Commission and transactions costs.
Time …
A substantial amount of time is involved in order to make the proper selection and to track the different stocks and bonds (less if you work with an advisor).
Keys to action…
Review your goals and objectives.
Determine whether you have the interest, knowledge, and time necessary to make choices.
Choose a selling price before you buy.
Track investments closely.
SET IT UP
Be aware of the commitments necessary to being successful— time, money, and knowledge.
STEP ON IT
Be prepared to make business decisions and co not become emotional about a particular issue.
STEP ON IT +
Include the cost of buying and selling in your calculations.
Notice…
How much interest you have in the subject.
Your willingness to invest the time necessary.
Your ability to remain objective.
But what if….
The price goes down?
Have a plan to cut your losses.
Thought primers…
The good thing about making all of my own choices…
When I rely on myself…
When I rely on the advice of others…
Investing in the market makes me…
