The 6 Important Elements of Successful Investing
02 Nov 2015
In their order of significance, these are the six important elements of the success fundamentals:
- How early you start investing
- How often you invest
- How much you invest
- Whether you stay invested
- How much you keep (avoiding tax erosion)
- Your rate of return
You will note that your rate of return is not number 1. In fact, although it qualifies as important, it’s last on that list. Don’t be obsessed with chasing performance. Instead focus on putting a plan together that considers every element.
Notice that the first five elements of the success fundamentals are behaviorally driven. It’s only the sixth one, the rate of return that an individual doesn’t influence directly. It is dependent on business and industry conditions, the economic winds, international relations, and prevailing perceptions, to name a few. Focusing on those first five is how you can build wealth.
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