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7 Simple Successful Strategies for the Lazy Investor

7 Simple Successful Strategies for the Lazy Investor
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By    |   Thursday, 07 September 2017 01:56 PM

Trying to follow the advice of financial gurus often makes investing complicated. Simple strategies not only reduce the confusion, but they also bring more riches for the lazy investor over the years.

Experienced investors may benefit from regularly examining data and trading when necessary to beat the market. Lazy investing is for people who want to see their wealth grow during a 20- to 30-year period without getting emotionally battered by the ups and downs of constant trading.

These seven simple strategies offer better returns and more money for the lazy investor:

  • Couch-potato philosophy — This involves the basic strategy of putting half your investments in index funds for equities and half in bond index funds. The formula can be tailored according to each person’s needs. People with a higher risk tolerance can go as high as 75 percent in stocks. During downturns in the stock market, investments in bonds remain stable or perform well, Investopedia notes.
  • Buy shares in good companies — When investing in stocks, strong businesses promise security to accumulate wealth over time. Buy stock in companies with products and services people want. Pay a reasonable price that assures good returns and stay invested for at least five years through any volatility, according to the Balance.
  • Lower fees — Costs add up. The lower the fees to an investment service, the more money an investor accumulates over the years. Fees will add up in a retirement fund that’s active for 30 years or so. During that time, paying 1 percent a year in fees would earn you over 20 percent more money compared to paying 2 percent in fees, Kiplinger points out.
  • Low-cost mutual funds — Buying mutual funds allows the lazy investor to sit back and watch a financial portfolio grow steadily. Mutual funds include stocks that cover the overall market for diversity at low cost, Money Under 30 reports.
  • Automatic withdrawals — Keep putting money into your investments, regardless of the ups and downs in the market. Automatic withdrawals in retirement or savings accounts assures steady investing. Smart investors won’t even miss the money that goes in because they don’t see it.
  • Employer contributions — Take advantage of 401(k) plans at work if possible. Employers that offer matching contributions are essentially giving you free money for your investments. It’s like getting a regular pay raise that goes into your savings, Clark.com explains.
  • Changes as you age — Investment goals change as people get older. Young investors can afford more risk through stocks and have time to make up for any losses. Security plays a role for older workers getting closer to retirement, so switching to more bonds or other safe investments with fewer risky stocks makes sense. It’s also wise for the lazy investor to increase the amount in savings accounts as income rises.

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Trying to follow the advice of financial gurus often makes investing complicated. Simple strategies not only reduce the confusion, but they also bring more riches for the lazy investor over the years.
simple, strategies, lazy, investor
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2017-56-07
Thursday, 07 September 2017 01:56 PM
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