The Credo Of A Superior Investor

1. I will understand my own circumstances and formulate an investment plan based on my needs, not in anticipation of market trends!

2. I will remind myself that investing is not a form of entertainment. If I have an urge to gamble, I will go to Las Vegas and leave my investment portfolio alone!

3. I will stick to my plan regardless of market conditions!

4. I will not attempt to pick winning stocks!

5. I will ensure that my holdings are adequately diversified within each asset class I own!

6. I will place primary emphasis on minimizing my investment-related costs!

7. I will stay abreast of changes in investment-related tax laws!

8. I will not purchase any financial instrument I do not fully understand!

9. I will ignore money managers or others selling products rather than advice!

10. I will ignore market prognosticators!

11. I will take full advantage of my qualified retirement plans by making the maximum allowable contributions I can live with!

12. I will hold my least tax-efficient assets in my tax-deferred accounts!

13. I will rebalance my portfolio infrequently, but at regular intervals regardless of the current state of the markets!

14. I will not allow the price I have paid for a security to influence my future investment decisions -- except for tax considerations regarding capital gains and losses!

15. At year end I will harvest tax losses simply and without ever deviating from my portfolio's target allocations by selling and buying index-type funds within the same asset class!

16. I will appreciate the simplicity of this approach, and instead of worrying about factors that are not within my control, I will instead establish my plan and then turn my attention toward enjoying life!

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