A pound of cure…for your financial health

Add comment January 28th, 2008

  Brian J. Knabe, MD

My previous entry highlighted some common-sense approaches to maintain one’s health and prevent diseases.  Similar simple measures can help you in the financial area as well.  For example:

1. Start investing early in life – save a portion of each paycheck.
2. Choose investments with low costs – the more of your money you keep, the more you will have at retirement.
3. Don’t chase returns – by the time an investment is the latest craze, it is probably over-priced. 
4. Be a long-term investor.  Moving in and out of the market frequently will increase trading costs and taxes, and it is not possible to consistently time the market.
5. Make sure you have an up-to-date will - and a living will.

Your physical health and your financial health are very similar in this respect – following simple, common-sense advice can result in significantly improved outcomes in the long-term.