Investing Dos and Don'ts

One of the keys to investing for retirement is how you react to the market. Knowing which behaviors to follow and which to avoid is critical to the long term success of your investments. We’ve put some descriptions of the behaviors you should adopt and the ones to avoid in our guide to Investing Dos and Don’ts.

Dos of Investing

Here are four basic rules to follow that have been shown to improve your chance of success over the long term:

• Invest for the long term
• Invest according to your risk tolerance
• Maintain your portfolio balance
• Make sure your portfolio is diversified

Don’ts of Investing

Following the rules above, however, may not be enough. The way you respond to changes in the market can have a significant affect on your ability to reach your goals. Here are three behaviors to avoid when investing for the long term:

• Chasing returns
• Overreacting to changes in the market
• Attempting to time the market

Let’s see how you can put these rules to work for you by building your personal profile.