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Investing - Part III	5/17/2009
OK, so you have determined that you QUALIFY to invest because you have enough cash to meet your normal day-to-day cash needs, you have your high-interest debt paid off, your insurance needs are being met and a you have accumulated a 6-month Emergency Fund by saving up in an easily accessible, safe bank account. Let's say you agree with my passive investing philosophy and you want to get going. How do you proceed? Here's how: 1) Go back to your monthly Personal Budget (see my 4/26/07 blog) and pencil in a new item for the amount you can afford to invest monthly in the "Budget" column under the "ASSET" general heading. Call it "Investments". Make sure that this amount is realistic in terms of the items I mention in the first paragraph above. This new allotment will be the monthly amount that you will invest in your to-be-formed investment portfolio. I can help you with determining the correct monthly investment amount. 2) Contact me to assess and discuss your Investment Profile. If you are married, you and your spouse should each complete a Investment Profile. If you are far different in your views on investing, it might be a good idea to have me add you score to your spouse's score and get an average of the two as a compromise. 3) Decide how hands-on you want to become as an investor. Some investors like to do their own investing by setting up and monitoring their own accounts. I can help you with this task and charge you an hourly rate for doing so. Some investors want me to set up and manage their accounts. I can do this as well and charge you an annual fee based on a low percentage of the total asset value that I am asked to manage. 4) Start investing! Every year, you and I, as your Investment Adviser, will need to get together to re-compute your Investment Profile score and examine your portfolio in light of it. Any changes that need to be made can be made at that time. This process of changing your investment structure over time to keep up with your investment needs is known as re-balancing your portfolio. Basically, certain investments may be disposed of to make way for investments more suitable to your needs. For example, Sharon, the aggressive investor we discussed in Investing - Part II, may want more conservative stocks in her portfolio as she nears retirement age in order to protect her nestegg from downturns. Conclusion: This blog and the postings entitled "Investing - Part I" and "Investing - Part II" is as much information as I believe you will need to understand investments. A successful investor will in the long run accumulate wealth needed for college costs, retirement funds and a financial legacy for childen and other successors. If you require any additional information above and beyond what I have posted in these three Investing blogs, please do not hesitate to contact me. Live long & prosper! back