I know in today’s market it is hard to be patient, patience has never been one of my greatest virtues but let’s give it a try……
TODAY’s Jean Chatzky on how to become a successful and patient investor
For years, I’ve been preaching the mantra that boring is better when it comes to your investments. In fact, if you’ve been reading this column for any length of time, you know that my strategy is to come up with an asset allocation that you can live with and then dollar-cost average into the market on a regular, automatic basis. Given the state of today’s market, you might be thinking that I’ve changed my tune. But, in fact, this economy has only served to validate my position. If — at the onset — you can’t commit to staying in the market despite its ups and downs, you’re treading dangerous waters, particularly if you’re not an experienced investor. You run the risk of overthinking the situation and making investment decisions that not only aren’t rational, but are emotional as well. In other words, you run the risk of losing your hard-earned money. That’s why now — more than ever — you need to dial in to your patient side.
