Investing is easy; successful or profitable investing isn't. It takes knowledge and understanding to build and maintain wealth, as many investors find out when the markets go south. Successful investors, though, sustain substantially smaller losses during downturns. Often, they even reap profits while less savvy investors lose their shirts.
When the markets are strong, even “unworthy” securities can take off, carried by market momentum. Investors who are normally risk-averse may find themselves buying risky securities when it seems like every choice is a winner. But as soon as the markets enter their inevitable down phases, as is the nature of cyclical markets, weak securities are the first to fail and risk-averse investors begin to lose sleep.
That doesn't have to happen. By designing a solid plan and sticking with it, investors can enjoy profitable portfolios in almost any financial environment regardless of market cycles. Having a sufficiently diversified portfolio with a well-designed asset mix makes all the difference. And this can be accomplished only when you know exactly what you're doing and why.
Too many investors buy or sell securities (especially stocks) on a whim. They've gotten a tip from someone in the office or read about a hot new stock on the Internet. Maybe a less than scrupulous broker or financial advisor has steered them toward something that sounds great — and it is, for the broker, who profits when clients place their buy orders. But smart, successful investors look past the “great deal,” delving deeper into the potential of any investment before they buy even a single share. They gather the facts, and base decisions only on information, never on emotion.
That's the secret to a lifetime of wealth: knowledge. And that's what you'll find in this book. Whatever your financial goals, whether they're long-term or short-term, you need to know exactly how to reach them. From adequate college savings to a luxurious retirement to a down payment on your first house, you need to have a comprehensive financial plan in place to turn your dreams into reality.
Inside this book, you'll find a great deal of information on how to keep wealth creation simple and how to use what you know to secure your financial freedom. All the tools you need to develop a profitable portfolio are right here. You'll get straightforward information and guidance, presented in a way that makes even complex investing strategies easy to understand. You'll find out which investments to stockpile and which to avoid at all costs — no matter how good they look at first glance. And if you're not quite sure how to get started, there's a complete guide to financial professionals that can help you figure out which is the best one for your unique situation.
This book is designed to set you on the path to financial security. By following its basic principles and guidelines, you can become the master of your own wealth and build a substantial nest egg for your family. Use it to the best of your ability and take permanent control of your financial life.