Financial security can be accomplished through the accumulation of sufficient financial assets, but those same assets must be managed and protected to retain financial security. We believe that there are several essential elements involved in managing financial assets and you need to identify and understand these important ideas.
The foremost of those ideas is planning and establishing rational parameters for managing financial assets. Establishing a plan and policies to be followed when rapidly changing circumstances tempt you to make short-term decisions that often jeopardize long-term success. Large investment pools of money that are professionally managed, with few exceptions, establish what is often called an Investment Policy. That is a practice that individual investors seeking financial security should also follow.
There are several key concepts of investment management, many with Historical Perspectives that can provide guidance to the person responsible for making decisions that will determine success or failure in maintaining financial security.
We have identified 7 Common Investment Mistakes that are often responsible for the loss of financial security. Identifying and understanding these ideas may help you avoid making any of those mistakes.