ITA Wealth Management

It is that time of the month when one needs to get back to the basics of investing. Look over these basic rules below, digest them, and then examine the “Elite” Portfolio if you are looking for a starting point.

• Pay off all credit card debt.  That is the easiest 10% to 15% (or more) you will make on your money.
• Only borrow for a house, education, and your first automobile.
• Once credit card debt is zero, begin saving as much as you can.  Search “The Golden Rule of Investing” on this blog.  Search the Goofus – Gallant example as well on this blog.
• Open up a broker account with a discount broker.  Never use a “full-service” broker.  “Full-Service” means you will be charged several times as much for the service as you can do for yourself with a discount broker.
• Develop a portfolio plan.  Plenty of examples are available on this blog.
  • Decide what asset classes to include in the portfolio.
  • Determine what percentage to place in each asset class.  Examples are available on this blog and over on Premium Content.
  • Consider taking the Risk Capacity Survey over at http://www.ifa.com.
• Begin reading this blog from the very first entry back on February 14, 2008.
• Develop an appreciation for index investing vs. selecting individual stocks.
• Read.  Begin with one of the “Five Best Books of Investing.”
• Ask questions.  This blog is an excellent place to try out your investing wings.  We are here to help you with portfolio development and management.
• Learn to manage your own money.  If you absolutely want no part of handling your own finances, then seek a fee based money manager.

And now for that “Elite” Portfolio suggestion, heretofore called, “Portfolio for Dummies (PFD).”   PFD is really an incorrect description as a basic index oriented portfolio is anything but dumb.

This portfolio will consist of a few Exchange Traded Funds (ETFs).  Examples are as follows:  VV, VO, VB, VEU, VWO, VNQ, and TIP.  One can build a simple, yet basic portfolio from these seven ETFs.  The index vehicles you choose are part of the portfolio planning stage. The key is to get started as soon as possible.  Building a retirement portfolio takes time and discipline.  Get started immediately as time is the key element.

Lowell Herr

Photograph:  Preparing to be tendered to Delos Island, Greece

For additional help with portfolio tracking, planning, development, and management suggestions, consider a Premium Content subscription for a low, $6.99 per month.

Welcome to readers from Sweden and Finland.