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Guest Article
Category: Finance & Investment / Wealth Building
12 Principles to
Successful Long-Term Investing
By RJ Weiss
The principles of successful investing are simple to
understand but not duplicated very often. See why, many investors don't achieve the success they
deserve.
Principle # 1 - The
Goal of Long-Term Investing
The goal of long-term investing isn't to provide you
security today, but to earn you real, inflation adjusted, long-term returns for the
future.
Principle # 2 -
Compound Interest Is Your Best Friend or Worst Enemy
Ask anyone older what they wish they had done at your
age, and the answer is usually, "I wish I began investing for retirement." Why not let your
investment portfolio experience the magic of compound interest itself, instead of imagining the
possibilities.
Don't forget that compound interest can also be your
worst enemy. Investments are not the only thing that compounds, so does debt.
Principle # 3 -
Investing Isn't To Be Confused With Gambling
If you apply the principles of investing, risk
tolerance, time horizon, and asset allocation, you can have a fairly close assumptions of your
returns. There isn't a lot of risk.
Strategies like trying to time the market, buying and
selling individual stocks, selling options, are not investing, they are
gambling.
Principle # 4 -
Successful Investing is a Passive Activity
Investing is as fun as watching paint dry. The rewards
tend to be a little better, although.
Making more trades or paying more attention to news,
will not make you a better investor.
Principle # 5 - You
Should Never Begin Investing Without Goals
If you don't know why you're investing, you should not
be investing.
Principle # 6 -
Risk Tolerance Matters
I have seen it over and over again, overstating your
risk tolerance will cost you more in the long run. It's easy to say, you enjoy risk because it's
likely to give you a higher return. What's hard is staying the course when the market drops
50%.
Principle # 7 -
Control Only What You Can Control, Don't Worry About The Rest
You can't control what the market does from day-to-day.
Don't worry about what you can't control. It will only cause you stress and
money.
Take time understanding the things you can control such
as expenses, taxes, risk tolerance, and asset allocation. This is what you need to take the time
to understand.
Principle # 9 -
Taxes Matter
When you're http://genywealth.com/start-investing-asset-location-gen saving for retirement, accounts such as a Roth IRA or 401Ks will always out gain the
same investment in non-tax advantaged account. There is no reason, why you should be
investing in anything besides these accounts for retirement.
Principle # 10 -
Costs Matter
Invest $5,000 per year for from the time you're 25 to
the time you're 65 into a Roth IRA, earn 10% a year, and you will have accumulated
$2,434,259.
If you earn just 9%, the difference between paying a 1%
fee, you will have earned $1,841,459.
Costs matter!
Principle # 11 -
Most Investment Magazines, Newsletters, and Television Shows Are Meant to Sell Advertising, Not
Provide Quality Investment Advice
Why else would BusinessWeek in April, 2008 advise you to
buy http://www.businessweek.com/magazine/content/08_14/c4078insidewal788562.htm
Lehman Brothers stock? Yes, that's the company that went bankrupt a
few months later.
Principle # 12 -
Listen to 3 of The Greatest Investor's of All Time
Warren
Buffet - "The best way to own common stocks is through index
funds."
Peter
Lynch - "Most individual investors would be better of in an
index mutual fund."
David
Swenson - "You belong at the other end, with a portfolio
exclusively in index funds with low fees. If you're not going to put together a team [of 20-25
investment professionals] that can make high-quality decisions, your best alternative is passive
investing"
-----
RJ Weiss purpose in life is to educate all of Gen Y on
the basics of personal financial planning. He currently maintains the blog Gen Y Wealth, where
can find articles such as his [http://genywealth.com/ing-direct-review-savings-checking]ING Direct Review.
Article Source: [http://EzineArticles.com/?12-Principles-to-Successful-Long-Term-Investing&id=4545781
] 12 Principles to Successful Long-Term Investing
Guest Article
Category: Wealth Building
7
Ways to Boost Your Business, or How to Ask to Get Ahead
by
Jack Canfield
Ask
and you shall receive.
How many times have you heard
that? But how many times have you used this fundamental truth in your daily life recently?
Let
me put it this way:when was the
last time you asked for a written endorsement from a client or colleague?
How about feedback from your
customers? Or the opportunity to renegotiate something that just doesn't work for you?
I
can't tell you how often I watch business professionals--especially those in sales and marketing
positions--falter because they simply stop practicing the art of
asking.
If you were to ask successful
top executives how they got to where they are, I bet most would admit they "asked to get to the
top." In other words, they knew when and how to ask the right questions so they could gather the
right information, build their reputation, seek useful referrals, generate new business, and
expand their audience or customer base.
If
the simple act of asking is so critical, then why don't more people do
it?
Because for some reason, people
falsely think asking implies weakness and sets one up for potential rejection. It's easy to come
up with all sorts of excuses to avoid asking questions that can return unexpected or critical
answers. Yet the world responds to those who ask.
If you are not moving closer to what you want, you probably aren't doing enough asking.
Here
are seven asking strategies you can implement in your business (and in life) to boost your
results:
1.)
Ask for Information
You can never have too much information; in fact, the higher up you go, the more
you need to know. To win potential new clients, you first need to have an understanding about their
current challenges, what they want to accomplish and how they plan to do it. Only then can you
proceed to demonstrate the advantages of your unique product or service.
Ask questions starting with the wordswho,
why,
what, where,
when and
how to
obtain the information you need. Only when you truly understand and appreciate a prospect's needs
can you offer a solution.
2.)
Ask for Business
Would you believe thatmore than 60
percent of the time salespeople never ask for the
order after giving a complete presentation about the benefits of their product or
service?!
It's true, and a painful
statistic that could put anyone out of business quickly if it's not changed. Always ask a
closing question to secure the business. Don't waffle or talk around it--or worse, wait for your
prospect to ask you. No doubt you have heard of many good ways to ask the question, "Would you
like to give it a try?" The point is, ask.
3.)
Ask for Written Endorsements
These can be difficult to ask for if you don't like tooting your own horn, but
well-written, results-oriented testimonials from highly respected people are powerful for future
sales. They solidify the quality of your product or service and leverage you as a person who has
integrity, is trustworthy and gets the job done on time.
When
is the best time to ask?Right after
you have provided excellent service, gone the extra mile, or made your customer really happy.
Simply ask if your customer would be willing to give you a testimonial about the value of your
product or service, plus any other helpful comments.
4.)
Ask for Top-Quality Referrals
Just about everyone in business knows the importance of referrals. It's the
easiest, least expensive way of ensuring your growth and success in the marketplace. Your core
clients will gladly give you referrals because you treat them so well. So why not ask all of them
for referrals? It's a habit that will dramatically increase your income. Like any other habit, the
more you ask the easier it becomes.
5.)
Ask for More Business
Look for other products or services you can provide your customers. Devise a
system that tells you when your clients will require more of your products. The simplest way is to
ask your customers when you should contact them to reorder. It's easier to sell your existing
clients more than to go looking for new ones.
6.)
Ask for Feedback
This is an important component of asking that is often overlooked. How do you
really know if your product or service is meeting your customers' needs? Ask them, "How are we
doing? What can we do to improve our service to you? Please share what you like or don't like about
our products." Set up regular customer surveys that ask good questions and tough questions. It's a
powerful way to fine-tune your business.
7.) Ask to
Renegotiate
The negotiating room should never be locked up for good. Regular business
activities include negotiation and often re-negotiation. Many networkers get stuck because they
lack skills in negotiation, yet this is simply another form of asking that can save a lot of time
and money. All sorts of contracts can be renegotiated in your personal life, too, such as changing
your credit card terms and rates. As long as you negotiate ethically and in the spirit of a
win-win, you can enjoy a lot of flexibility. Nothing is ever cast in stone. It's only in stone if
you don't speak up!
The 5
Secrets to Successful Asking
The first stumbling block for
most is knowing how to ask. There are five secrets to great asking that can guarantee you
results, however big or small.
If
you ever find yourself hitting brick walls and coming up short in responses, come back to these
five tips:
Ask
Clearly:No one likes getting a
vague or fuzzy question. Be precise. Think clearly about your request. Take time to prepare. Use
a note pad to pick words that have the greatest impact. Words are powerful, so choose them
carefully.
For example, if you throw out
the "How am I doing?" question without specifics, it may take time for the other person to
understand what you're talking about. Instead, try, "How is my attitude with customers? Do you
see room for improvement? Where?"
Ask
with Confidence:People who ask
confidently get more than those who are hesitant and uncertain. When you've figured out what you
want to ask for, do it with certainty, boldness and confidence. Practice in the mirror if you
have to, or write out your question in advance.
Be prepared to hear the
unexpected or the unwanted. Try to have an open mind and heart (it's okay to feel intimidated by
the experience, but don't show it). Don't get defensive if you hear something you don't like or
that makes you uncomfortable. It's good to get a little uneasy once in a while upon the
observations or insights of others. They will inspire you to stop, reflect, and take steps to
make a shift for the better.
Ask
Consistently:Top producers know
that they can't quit if they ask once and don't get a good response. Keep asking until you find
the answers, and try different ways of asking if one doesn't seem to be working.
In prospecting there are usually
four or five "no's" before you get a "yes." You may, for example, want to ask a co-worker about
your performance on an important team project, but you sense reluctance from that person to
offer an opinion.
You can always ask another
person who is more receptive to the question, or consider how you are asking it and try again.
Because people don't normally go around asking others for opinions on how well they are doing,
it's not a question typically heard. So be prepared to ask over and over again before you hear a
clear--useful--answer.
Ask
Creatively:In this age of global
competition, your asking may get lost in the crowd, unheard by the decision-makers you hope to
reach. There is a way around this. If you want someone's attention, don't ask the ordinary way.
Use your creativity to dream up a high-impact presentation.
Bear in mind that asking someone
to stop and evaluate you can seem awkward or time-consuming. Show respect for them first and
find the ideal time to ask the question. Here's one way to engage the insights of a superior: "I
highly value your opinion and honest perspective, and would love to know what you think I could
be doing differently on a daily basis that would make your life easier and make our clients
happier."
Ask
Sincerely:When you really need
help, people will respond. Sincerity means dropping the image facade and showing a willingness
to be vulnerable. Tell it the way it is, lumps and all. Don't worry if your presentation isn't
perfect; ask from your heart. Keep it simple and people will open up to you.
Like speaking a different
language, asking takes continual practice until it becomes a regular, reflexive habit. The
sooner you build your "Ask Muscle", the sooner you'll see the results you've been waiting--and
searching--for.
Don't
think asking only relates to work-related goals and tasks. Bring this practice home to enrich
your relationships with your family members and your friends, too!
I trust you'll be surprised and
delighted at what you discover about yourself in this process.
Happy asking!
©
2010 Jack Canfield
Jack Canfield, America's Success Coach, is the founder and
co-creator of the billion-dollar book brand Chicken Soup for
the Soul and a leading authority on Peak Performance. If you're ready to
jump-start your life, make more money, and have more fun and joy in all that you do, get your
FREE success tips from Jack Canfield now at: www.FreeSuccessStrategies.com
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