MARCH 2020 • LONGISLANDPRESS.COM 25
NO RESOLUTIONS GOOD HABITS INSTEAD
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BY PEOPLE'S UNITED ADVISORS
New Year’s resolutions are noble-minded,
but they tend to be too broad, devoid
of solid implementation, and focus on
who you aren’t, rather than who you are
but would like to improve.
Surveys fi nd the failure rate for those
who make resolutions may be above
80 percent. Instead, experts suggest
putting your energy into building good
habits.
Here are eight investment habits worth
developing.
HAVE A PLAN
Set out your short- and long-term
goals, your needs and wants, and a
timeline for achieving them. Then
monitor that plan at least once a year.
Your objectives are likely to change
over time.
STAY INVESTED
Market returns have come in sudden
and unpredictable bursts. Don’t check
your portfolio day in and day out. It’s
long-term growth that counts.
FEED YOUR PORTFOLIO
The more you save, and the earlier you
start, the better. But just as it’s never too
early to begin investing, it’s never too
late. And don’t forget to keep a regularly
replenished emergency fund containing
enough cash to get you through at
least six months.
KEEP IT DIVERSIFIED
A global mix of different types of
stocks, bonds, and, for some investors,
alternatives like commodities help to
mitigate the risk of any one asset and
expand return opportunities. But you
can’t guess which asset will be at the top
at any given time, so you need to stay
invested in all that fi t your plan.
AUTOMATE WHEN POSSIBLE
To help you add funds regularly, you
should consider automatic deductions
from your paycheck into your investments,
if available.
MIND THE TAXES
And be aware of tax-limiting
strategies all year, not only at year
end. According to the Morningstar-
Mutual Fund Evaluator, U.S. stock
funds on average gave up 2 percentage
points of annual return to taxes
over the past three years. Over time,
a tax drag of that magnitude would
erode lots of wealth.
PLAN RETIREMENT EARLY
Be prepared to replace at least 70 percent
of your preretirement income,
don’t sell all your stocks (you’ll probably
need the capital appreciation that stocks
can provide over time), and contribute
regularly to one or more tax-deferred
savings plans.
SEEK PRO ADVICE
Some investors — but not many — can
handle all the above (and more) by
themselves. For most, though, having
investment experts on their side is a
powerful benefi t.
Investors should get professional
help when assessing their goals.
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