Two Most Important Steps of Any Investing Strategy

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Name:  Al Emid

Website: Al Emid

Entry Category: Retirement and Investing

#MoneyMinute Voting is closed

I’ve covered investing, saving, retirement planning for more years than I will admit in a public video and it occurs to me that many of the tips we hear are really steps three to 103. We need to spend more time looking at steps one and two.

Step one, I would suggest, is to calculate your net worth, which in the simplest terms is to add up all your assets, all your liabilities, and subtract one from the other.

Step two is to calculate your risk tolerance, which in its simplest terms means how much risk can you take in your investing. When you’ve done those, all of the other steps will go more smoothly, more knowledgeably, and you’ll have the information you need to do them right.