Periodic Rebalancing and Reallocation

This final step in our investing advice is what keeps your investment earning safely, the way you intended it to, year in and year out. Every six months minimum, or even less if your individual investments call for it, you will notice that the growth or loss in some areas of your portfolio will have an effect on the pie chart overall. For instance, if the mid-cap growth part of your portfolio, in one way or another, has grown in percentage while everything else stays the same size, then your portfolio is now overall more aggressive and geared towards growth than you first set out to achieve. (Read: a little less safety.)

On the other hand, if just the bonds in your portfolio grew while the rest of it stayed the same size, in 6 months your account wouldn't be as aggressive as you had intended it to be. It is important to rebalance your portfolio at that time so that you make sure it's performing at its optimum efficiency, and stays best suited to reach your goals.

That's about it for our beginning Investor's investing advice, now that you're informed, you should have no problem deciding which investments are right for you, if you need a Financial Advisor, and what to look for in one. Of course, if you have any questions you felt we didn't cover, or any questions specific to this investing advice, we are always here to answer them.

We hope you found this 10-step program useful. If you did, we hope that you refer it to your friends, relatives, and anyone else you'd like to see benefit from it. It is our goal to educate as many investors as possible, so that hopefully one day such a thing as bad investment advice will go extinct like the Dodos. Also, if the whole general public at large was this well informed about their investment options, unscrupulous Brokers would be driven out of business in no time... So please support us by telling every investor that you know about us!