|Fully fund your IRA. Write out a check to your IRA each time you get paid, or, better yet, have the money automatically sent from your checking account. A systematic investment plan does not guarantee a profit or protect against loss. Be sure you consider your financial ability to continue investing through periods of low price levels.
Build an emergency fund. Put away six to 12 months’ worth of living expenses in a liquid account, and only use the money for emergencies.
Cut your debts. The less you owe, the more you can invest.
See a professional. If you’ve never worked with a financial advisor, make 2008 the year to start.
Will Presidential Election Year Affect Investors?
We elect a new president this year. As an investor, you might ask: How does an election year affect the investment climate?
The Dow Jones Industrial Average rose in nine of the past 11 presidential election years. Yet, past performance, as you’ve heard, can’t predict future results.
And the outcome of the election won’t necessarily tell you much, either. The stock market has performed well - and performed poorly -under both Democrats and Republicans.
Instead of pondering the “what-ifs” involved in a presidential election, follow some tried-and-true investment strategies. For example, think long-term - don’t chase after “hot” stocks that make be inappropriate for you. Also, be aware of your risk tolerance and use it to help guide your decisions.
This November, don’t forget to vote. But before and after Election Day, cast your ballot for solid investment techniques.
Contact Wendell at Edward Jones www.edwardjones.com.