{"id":151080,"date":"2021-01-10T03:01:52","date_gmt":"2021-01-10T00:01:52","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/opinion-7-financial-resolutions-that-can-boost-your-wealth-for-a-lifetime\/"},"modified":"2021-01-10T03:01:52","modified_gmt":"2021-01-10T00:01:52","slug":"opinion-7-financial-resolutions-that-can-boost-your-wealth-for-a-lifetime","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/opinion-7-financial-resolutions-that-can-boost-your-wealth-for-a-lifetime\/","title":{"rendered":"#\n  Opinion: 7 financial resolutions that can boost your wealth for a lifetime"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a743de7b4a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a743de7b4a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/opinion-7-financial-resolutions-that-can-boost-your-wealth-for-a-lifetime\/#Get_higher_long-term_returns_less_risk_and_more_peace_of_mind\" >Get higher long-term returns, less risk, and more peace of mind<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/opinion-7-financial-resolutions-that-can-boost-your-wealth-for-a-lifetime\/#Paul_A_Merriman\" >Paul A. Merriman<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Opinion: 7 financial resolutions that can boost your wealth for a lifetime<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Get_higher_long-term_returns_less_risk_and_more_peace_of_mind\"><\/span>\n  Get higher long-term returns, less risk, and more peace of mind<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"527BCD66-5039-11EB-A47B-859F3324C190\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Every year at this time, the financial <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a> is filled with lists of how to be a better investor. <\/p>\n<p> This got me to thinking: If these lists are so effective, why do we need a fresh set of them every year? Two answers come immediately to mind. First, investors are fickle and easily dissuaded by their emotions, compelling sales pitches and of course the ups and downs of the markets. Second, many of the items on these lists are vague and fail to tell people what they should actually do.<\/p>\n<p>Read: Yuck! Here are the 7 assets Wall Street hates the most for 2021<\/p>\n<div class=\"paywall\">\n       Ignoring that first problem, at least for now, I\u2019m going to propose seven steps you can take that will actually make a difference. <\/p>\n<p>First, let\u2019s look at a few common \u201crules\u201d that aren\u2019t really useful. <\/p>\n<p>Starting with Warren Buffett, who is widely regarded as the best of the best investors of our era, we find this well-known pre<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">script<\/a>ion: \u201cRule No. 1: Don\u2019t lose money. Rule No. 2: Don\u2019t forget Rule No. 1.\u201d <\/p>\n<p>Sounds good, don\u2019t you think? But as a New Year\u2019s resolution, what does it mean? <\/p>\n<p>Unless your luck is incredibly good, any stock or fund you buy is very likely to decrease in value at some point. If you buy something for $50 a share and five minutes later its price is $49.75, have you violated this rule? <\/p>\n<p>Well no. If Buffett\u2019s advice really meant that, you could never buy anything. <\/p>\n<p>So he must be saying you should never sell an investment at a loss. In other words, hang on forever to anything that is worth less than what you paid for it. Does that sound like a recipe for success? Buffett himself has been known to sell investments at a loss. <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Read: Yes, it\u2019s possible to save too much for retirement<\/p>\n<p>Therefore, I have to give this \u201crule\u201d for successful investing a grade of \u201cD.\u201d Yes, it\u2019s thought-provoking, but it\u2019s not helpful. <\/p>\n<p>I looked at a list of \u201c10 Key Rules of Investing\u201d from John Bogle. Many of them are good, but they fall short of being actionable instructions that tell you what to do. <\/p>\n<p>For example: \u201cDon\u2019t fight the last war. What worked in the past is no predictor of what will work in the future.\u201d OK, but how is this useful? You can\u2019t know what will work in the future, so you\u2019re left to pilot a ship without a rudder. <\/p>\n<p>Fortunately, Bogle\u2019s list includes this: \u201cStay the course. The secret to successful investing isn\u2019t forecasting or stock picking. It is about making a plan, sticking to it, eliminating unnecessary risks, and keeping your costs low.\u201d<\/p>\n<p>That\u2019s very good, but the key thing point is \u201cmaking a plan.\u201d What should be in that plan? Will any old plan do the job?<\/p>\n<p>Let\u2019s turn to Bob Farrell, who was Merrill Lynch chief market analyst and senior investment adviser for 45 years. His widely circulated rules for investors contain good insights \u2014 but they don\u2019t tell investors what they should do. Three examples:<\/p>\n<p>\u2022 Excesses in one direction will lead to an opposite excess in the other direction. <\/p>\n<p>\u2022 When all the experts and forecasts agree \u2014 something else is going to happen.<\/p>\n<p>\u2022 The public buys the most at the top and the least at the bottom.<\/p>\n<p>Still, if you are like most investors, probably 90%, what you really want to know is exactly what to do. Instructions, in other words. <\/p>\n<p>You can always get instructions and recommendations from any broker. But what you really want are recommendations that will accomplish your goals, not Wall Street\u2019s goals. <\/p>\n<p>If your goals include higher long-term returns, less risk, and more peace of mind, you\u2019re in the right place. <\/p>\n<p><strong>1. Save some of your money regularly instead of spending everything.<\/strong> Start your serious savings earlier instead of later. If you can\u2019t sock away a lot, don\u2019t let that stop you. If you can save (and invest) even $25 a week, that\u2019s still $1,300 in a year, $13,000 in 10 years. Do that for 30 years and earn a compound return of 10%, and you\u2019ll have about $214,000. (And once you start seeing the results, I\u2019m willing to bet you\u2019ll find ways to add more than just $25 a week.)<\/p>\n<p><strong>2. Invest in stocks by the hundreds or thousands through low-cost index funds or ETFs in a variety of asset classes.<\/strong> Make sure to include value stocks and small-cap stocks. Massive diversification will reduce your risks. Indexing will almost certainly improve your return as opposed to active management. Including value stocks and small-cap stocks is highly likely to improve your long-term return.<\/p>\n<p><strong>3. Pay attention to taxes.<\/strong> Invest in a 401(k) or similar retirement account if one is available to you \u2014 with luck, you could even get matching funds from your employer. Maximize your use of IRA accounts, and choose a Roth IRA for its long-term tax advantages.<\/p>\n<p><strong>4. Ignore what you feel, and put your investments on automatic, using dollar-cost averaging.<\/strong> Don\u2019t let greed or fear determine when you invest. Recall Bob Farrell: \u201cThe public buys the most at the top and the least at the bottom.\u201d <\/p>\n<p><strong>5. If you\u2019re saving in an employee plan like a 401(k), make a target date retirement plan the backbone of your allocations.<\/strong> In one simple step, that will accomplish most of the things you should be doing. To increase your long-term return from this fund, allocate part of every contribution you make to an auxiliary fund such as a value fund, a small-cap blend fund, or a small-cap value fund. <\/p>\n<p><strong>6. Loop back to something John Bogle and many others have recommended: Stay the course.<\/strong> Don\u2019t panic and don\u2019t try to time the market.<\/p>\n<p><strong>7. Once you have done those six things, focus on living your life instead of obsessing about your investments.<\/strong> Stop watching the financial <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>, listening to hot tips from your friends, and reading the pundits who claim (without any evidence, as they say) to know what the future holds. <\/p>\n<p>If you successfully and consistently do these things, I promise you\u2019ll be among the most successful (and probably among the least stressed) investors out there. <\/p>\n<p>Happy New Year!<\/p>\n<p>Investors can learn some important lessons from the year that just ended, as I discuss in <a rel=\"nofollow noopener\" target=\"_blank\" href=\"http:\/\/paulmerriman.com\/our-most-important-investment-lessons-from-2020\/\" class=\"icon none\">my latest podcast<\/a>. <\/p>\n<p>Richard Buck contributed to this article.<\/p>\n<p><em>Paul Merriman and Richard Buck are the authors of \u201c<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.amazon.com\/Were-Talking-Millions-Supercharge-Retirement\/dp\/1736119605\/ref=sr_1_1?crid=3BA3IVOXW372H&amp;dchild=1&amp;keywords=we%27re+talking+millions+merriman&amp;qid=1606681437&amp;sprefix=merriman+talkin%2Caps%2C200&amp;sr=8-1\" class=\"icon none\">We\u2019re Talking Millions! 12 Simple Ways To Supercharge Your Retiremen<\/a>t.<\/em>\u201d<\/p>\n<div data-layout=\"\n              inline\" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetCommentingPromo\n            \n            inline\n  article__inset\n        article__inset--type-InsetCommentingPromo\n            article__inset--inline\n  \"><\/p><\/div>\n<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Paul A. Merriman\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Paul_A_Merriman\"><\/span>Paul A. Merriman<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<div class=\"mw-author-contributor\">MarketWatch Contributor Network<\/div>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B527BCD66-5039-11EB-A47B-859F3324C190%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Opinion: 7 financial resolutions that can boost your wealth for a lifetime &#8221; Get higher long-term returns, less risk, and more peace of mind Every year at this time, the financial media is filled with lists of how to be a better investor. This got me to thinking: If these lists are so effective,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":151081,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-151080","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/151080","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=151080"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/151080\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/151081"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=151080"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=151080"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=151080"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}