Investors who are organized and have a clear understanding of what they’re trying to accomplish are far more likely to succeed than those who are casual about their money. One of the most effective ways to make investing easy and methodical is to develop a personal policy statement that answers basic questions and issues that come up repeatedly.

 

Imagine that you are traveling in a foreign country. You’re feeling lousy, so you go to a health clinic. A man at the front desk says you must choose between two types of physicians.

Some people think a really good investment plan is complex and difficult; they may put it off thinking it’s no good unless it’s perfect. But an imperfect plan is better than none at all. In this article, Paul Merriman outlines 10 steps that will help you get off on the right foot.

Some investors tell me they would never have a portfolio that includes bonds. And sometimes I’ll run into an experienced investor who confesses that he or she has never been able to understand bonds. This always surprises me, because the basics of bonds are quite easy to figure out. In half an hour, an investor can learn enough to put bonds to work either as part or all of a portfolio. And on the other hand, there are enough wrinkles and nuances of bond investing to keep some people occupied for a lifetime trying to master all the fine points.

Reliability is a concept that we typically appreciate more and more as we mature. Young people are typically attracted to things that provide lots of “flash and dash.” Those of us with more decades under our belts have been disappointed enough times that we no longer take so much for granted. Over the years, we acquire more appreciation for the things that don’t let us down.