Title: POTENTIAL YOU CAN CREATE
Article:
Article: POTENTIAL YOU CAN CREATE
THE GRAND STRATEGY
Believe it or not, Ive discovered a single simple principle that will
enable you to get at tarrific return on your investment of time and
money.
Like Albert Einstein’s formula of E=MC’s, it’s simple but incredibly
powerful. Here it is Etch it in your brain:
Lebooeuf’s La: invest your time actively and your money passively
Actively investing your time means deciding how your time will be spent
rather than spending it according to current circumstances or the
dictates of others. Begin by taking a look at your life, your dreams,
what’s most important to you and what you want, then resolve tp spend
your
time doing what will get you from where you are to where you want are
to where you want t be in a way that’s most satisfying to you.
Just as a financial profolio allocates dollar song various types of
investment such stocks, bonds and cash, you have to decide how
allocate
your prfolio of time. A good time prfolio invests walking hours in
four
activities:
Learning
Earning
Lining
Giving
Money, on the other hand, should be invested passively. Passive
investing means buying and holding no-load. Low-cost index mutual
funds with
performances reflecting that of entire markets. Here’s the plan in a
nutshell
– choosing how you want to allocate your investment money among stocks
etc. e.g 50% – – dosmetics stocks
– 20% international stocks
this decision is called “asset allocation: and it has the greatest
impact on your future returns
2. Buy no-load, low-cost index funds according to that allocation. Put
50% in a total U.S, stock-market index fund, 20% in international
index
fund,20% in bond-market fund etc
3. contribute at least 10% of every dollar you earn to the portfolio.
The more you contribute, the sooner you reach financial freedom
4. check the portfolio once a tear allocation of stocks within 100%
original allocation do nothing rebalanced, it whenever your stock
allocation varies more thank 10% from your plan
that’s all there is to it. It s no-brainier investing that outperforms
at least 70% of the investment gurus who get paid to manage money.