Section IV - Lesson 11
Investing Your Regular Money - Summary And Review
The following is a summary of the major points presented in this section about investing your regular money and building wealth.
1) Commit to saving a dollar amount equal to 6% of salary by automatic deduction from your bank account each month.
2) Begin this plan immediately, because early money earns the most.
3) Arrange to have this amount automatically sent to the mutual fund company of your choice each month.
4) Choose an S&P 500 Index fund as your ideal investment vehicle and allocate 100% of your money to this choice.
5) Use dollar cost averaging as your ideal market timing strategy.
6) Reinvest all dividends and capital gains back into your account to maximize the benefits of compounding.
7) Convert larger lump sum amounts, when applicable, into a series of smaller monthly contributions to avoid bad market timing.
8) Avoid the temptation to experiment with other forms of "investment" when it comes to your serious money.
Recommended Reading
For more complete guidance and advice about investing and managing your regular money for maximum returns, you should check out our classic textbook, Financial Independence 101, A Simple Strategy For Building Wealth, on which this course is based.
The book is now being offered in hardcover at the special price of $19.95 with free shipping (you save $9). It is also available for immediate download in PDF format at only $9.95. Check it out!
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A Publication of About Your 401k.com
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