Oct 26

Do It Yourself Asset Management 3

2-Do your research on investments
Look at the performance and think about how much you can realistically afford to risk. Don’t view things with rose-colored glasses. Also look at where you are in the investment curve.

If you are only a couple of years off retirement, play with a couple of ‘money-spinners’ but for goodness’ sake; don’t ‘bet the farm.’

3-Diversify your holdings

This is actually what most people in asset management do. Do you know the old saying “Don’t put all your eggs in one basket?” Heed that. Put your money in different business investments. That way, when something happens with one, you still have the other one. For example, stocks have done well only about the last 6 years in 10. Bonds have performed well for the past 9 years in 10.

4. Keep track of your assets

In the broad view, computer programs are in 3 main categories: (1) Word Processing (2) Database and (3) Spreadsheet.

Of these, Database and Spreadsheets work well for asset management.

Use the database to keep track of what you have.

Use a spreadsheet to list what you have and be able to recalculate values, costs, and so on quickly and easily.

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