Nareit’s All REITs index, a measure of real estate investment trusts, was down 0.53 percent. Equity REITs fell 0.6 percent, though mortgage REITs rose 0.38
I want to be a billionaire in 2 years; how can I plan that?
HOW ABOUT IN 1 YEAR INSTEAD:
Sir a low P/E ratio for a
“Patience is the fund investor’s single most powerful ally.”
Let your attorneys ride shotgun, but .
#5Reme in your 401(
: “Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1!”
Fund a if you’re eligible; your money grows tax free for retirement, and in an emergency you can take your contribution back without penalty.
: Pay attention to the big themes, because they are what will help you earn ten times your money.
with a convertible loan, so you share in the upside.
Use as a hedge against inflation.
Raise the on your auto and home insurance.
Form to transfer assets at a tax discount.
Beat in 20 states by making big gifts while you’re alive.
For simple federal tax-free wealth transfer, make to children and grandchildren. It won’t cut into your $5.25 million lifetime exemption from gift and estate taxes.
Get tax advice .
Read by Edwin LeFèvre.
To keep peace with both relatives and the IRS, .
: “Never invest in any idea you can’t illustrate with a crayon.”
View collecting as ; psychic returns can make up for a lower average return than in stocks.
Add a to your homeowner’s insurance to cover collectibles.
When the bear charges, .
For protection from inflation and currency devaluation, buy the —farmland.
Know your risk tolerance. that lets you sleep at night, so you won’t panic and sell stocks at the bottom.
—over time, this “safe” investment barely keeps up with inflation.
After setting an asset allocation, ; it forces you to take profits when stocks have surged and to buy more shares when they’re cheap.
: “Adopt simple rules and stick to them.”
Buy as a speculation or political statement, not a hedge.
Hold taxable bonds in a 401(k) or IRA. Put individual stocks in taxable accounts so you can sell losers to harvest tax losses.
Pay attention to the IRS’ when harvesting capital losses.
Don’t invest in a hedge fund in compliance with Global Investment Performance Standards.
Build an outside your 401(k).
For the biggest tax break , make sure they’ll be displayed and not sold.
Put alternative investments like real estate (but never collectibles) .
: “All index funds are not created equal. Some have unconscionably high expenses.”
Keep an eye on—but don’t obsess over— .
Even committed indexers should use actively managed funds .
Yield is nice, but .
Gold is —historically, its price moves are unrelated to inflation.
For inflation protection, .
Don’t let the coax you into speculating.
Beware ; find God, not hot investments, at your church, synagogue or mosque.
: “The four most dangerous words in investing are: ‘this time it’s different.’”
Don’t put ; startups are always risky, and the new JOBS Act reduces both paperwork and investor protection.
Don’t underrate .
Use Quicken or a Web service to and see your big picture.
Use different passwords for each of your ; add optional security questions whose answers can’t be found in your Facebook or LinkedIn profiles.
Write down your and hide them; tell one person where they are.
—allocate a portion of your portfolio to health care and biotech stocks.
to boost your portfolio’s risk-adjusted performance.
: “Speculation is neither illegal, immoral nor (for most people) fattening to
Cash in on companies with —meaning stock buybacks.
Set investing rules for yourself that .
Look beneath a fund’s name, with .
to track your asset allocation.
Ask for a in your 401(k)—an opening that allows you to invest in any mutual fund and even individual stocks.
Bond laddering is good, but is important, too.
Treasury Inflation-Protected Securities (TIPS) offer protection from inflation—
: “Time is your friend. Impulse is your enemy.”
Use salary increases to
Defy conventional wisdom and .
To make money in small-cap stocks, , not the next blockbuster drug.
Don’t abdicate investment decisions .
Be suspicious—and investigate further—when .
Carry a $2 million or bigger umbrella insurance policy to .
: “Be fearful when others are greedy, and be greedy when others are fearful.”
Invest to , not to beat indexes.
Clarify your own objectives by writing an .
When , make an 83(b) election; if the company takes off, you’ll save big on taxes.
Consider your before setting a wedding date.
Aim to have
: “If you can’t save money, be really nice to your kids.”
Put in your portfolio using sites like for monthly cash flow and yields of from 7% to 9%.
: “Go for a business that any idiot can run—because sooner or later, any idiot is probably going to run it.”
Never take on a .
Buy an index fund .
Remain anonymous jackpot.
Work for a charity for ten years and .
Beware pitching products.
The spend many hours at it each day and have passion and patience. There are no shortcuts.
: “Diversification is protection against ignorance.”
, have advisors from different planets.
make sure you’re saving enough in your retirement accounts.
To avoid a tax penalty, , not 401(k)s, to pay college tuition.
at 4% for grad school; Uncle Sam’s Graduate Plus loans go for 6.41%.
Marry , or perhaps even more rewarding, .
When buying a luxury condo, like massage rooms and pet spas; they won’t contribute to resale value.
to your portfolio.
Wait for inflation to rise .
: “Rule number one: Most things will prove to be cyclical. Rule number two: Some of the greatest opportunities for gain and loss come when other people forget rule number one.”
Before remarriage, discuss .
Track gambling losses to offset .
Confess any , not a CPA.
as mortgage interest on a second home.
Don’t do deals between yourself and your own .
if you might face a lawsuit.
When creating a trust or family limited partnership for asset protection, or one obviously identified with you.
: Buy into a VIX futures fund and use wild, seemingly irrational swings as buying opportunities.
: “The market can remain irrational longer than you can remain solvent.”
Beware —fat payouts supported by declining cash flow.
Bet against weak currencies, .
Back up your using a secure cloud service.
Before investing in your own state’s , compare its fees and tax breaks to New York’s rock-bottom cost plan.
on homes of real estate tax deadbeats.
Know thyself: Read books like Dan Ariely’s and by Jason Zweig.
from each stock-picking mistake.
: “Buy into forgotten markets.”
Join an club.
Keep your own entrepreneurial options open by .
Buy stocks of companies .
: Do your homework, but still don’t bet the ranch.
: “As a speculator you must embrace disorder and chaos.”
Almost all look for market anomalies or disconnects that they can exploit.
: “Big opportunities come infrequently. When it’s raining gold, reach for a bucket, not a thimble.”
Always keep .
Allocate investments .
: “A penny saved is two (pretax) pennies earned.”
by bunching your expenses and showing a small profit in 3 of 5 years.
Postpone real estate gains tax with a .
to save big on taxes.
Be leery of investments .
: “Start saving now, not later: Time is money.”
Before making a big discretionary purchase, —what the dollars you’re spending could grow to if invested for 20 or 30 years.
Read How to Make Money in Stocks by .
Buy ; when you get bored with them, sell for a profit on eBay.
Discuss any way in advance of your wedding.
Hell hath no fury. Never cheat on your taxes and your spouse at the same time— .
Don’t buy a large amount of a all at once.
Buy and hold .
Don’t be afraid to .
It’s okay to —sometimes.
: “In the stock market, past is not prologue.”
Start a 529 college savings plan for yourself . If you don’t use it for graduate school, transfer it to your kid.
Make your kid rich by .
Deplete —you can spend it on a laptop, camps, private school and tutoring—before applying for college financial aid.
with auto debit.
: Suggest your kid take an accounting course—“It was the course that helped me more than anything.”
: “If you want to get rich, go into finance or a related field. Finance is the technology for making things happen.”
Identify yet keep your business. Buy them.
—good quality on sale.
just like a global macro hedge fund for as little as $1,000 to start.
Use when buying small-company stocks with low trading volume.
Don’t leave it all in the dollar. .
the whole stock market.
Buy companies with .
: “Buy on the cannons and sell on the trumpets.”
Monitor your individual stocks; set a Google news alert and .
Bone up on “ ” diversification.
Always and what if any commissions she’ll earn.
at investment seminars.
: “You know who didn’t have bad years? Bernard Madoff—until he got caught.”
Buy a retirement annuity cheap by .
If you , study up on the exceptions that let you avoid a 10% penalty, including taking “substantially equal periodic payments.”
: “Tune out the financial TV channels. Watch the cooking channel or the gardening channel if you want useful advice.”
: “Returns decrease as motion increases.’’
: “Don’t waste your time short-selling. Show me the short-sellers’ yachts.”
If you earn too much to contribute to a Roth IRA, .
If divorcing, get a “ ” from the court that allows you to split retirement assets without owing immediate tax.
Claim the for your kid’s college—if you’re eligible.
Don’t make —the government might seize your money and keep it on the grounds you’re trying to skirt anti-money-laundering laws.
Do a to harvest tax losses.
Gain funding—and a market—on .
: “Never confuse investing with trading.”
Don’t let .
Hold , not a regular IRA.
Be and put hot startup stock in a Roth IRA to make all gains tax free.
Learn about your fiancé’s debts, .
Beware high-yield investments pitched as being .
Watch out for .
Be leery of .
: “It is absurd to think that the general public can ever make money out of market forecasts. For who will buy when the general public, at a given signal, rushes to sell out at a profit?”
Avoid sudden lifestyle changes .
Automatically divert money from your paycheck into savings .
Retire to a place .
Benefit from 20/20 stock market hindsight by if stocks tank.
: “Sometimes your best investments are the ones you don’t make.”
: Don’t move into a neighborhood of poverty. Avoid any situation that could leave you with too much unsecured debt.
Get an , an organization of retired business folks.
for business funding.
To get the best effort and thinking from employees in your startup, .
, solve an irritating problem.
: “It is often easier to make progress on mega-ambitious dreams. …Since no one else is crazy enough to do it, you have little competition.”
Don’t in your 401(k).
Don’t rely on regulators .
: “What is smart at one price is dumb at another.”
With large-cap stocks, than earnings.
Strong stocks tend to stay that way. .
Don’t let on your children.
Start your of your business.
Read by Philip A. Fisher.
Buy a from your alma mater.
: “When you feel like bragging, it’s probably time to sell.”
Mine your closet for .
Mine for investment ideas.
: “The risks of being out of the game are huge compared to the risks of being in it.”
like Warren Buffett does.
Buy stocks when
Don’t count on an inheritance.
: “Getting rich takes hard work, a passion for what you do and luck.”
If you win the Powerball jackpot, before making any decisions.
from old employers.
If you’re 50 or older, with substantial self-employment income, to shelter $100,000 a year or more from tax.
Max out your 401(k) contributions: you can contribute $17,500, or $23,000 if you’re 50-plus.
If your marriage is shaky, make .
If your spouse is shady, file .
: “Never buy anything from someone who is out of breath.”
Know your financial advisor.
Be skeptical of —ask how much is guaranteed and at what cost.
Be wary of companies that have .
aren’t necessarily cheap.
Make sure and likely to remain that way.
: “Risk comes from not knowing what you’re doing.”
to add to your home’s basis and cut gains taxes when you sell.
Buy than you can afford.
Don’t accept a high property tax assessment of your home—you can appeal and .
Don’t assume you should buy a house. Start by for homes in your market.
If you have no time for complexity, diversify your portfolio with .
Buy a to make sure you don’t outlive your money.
ersatz retirement annuity with savings bonds.
with closed-end, covered call funds.
: “Trust in time, rather than timing.”
Delay retirement .
But in your planning that you can work full-time until 70.
Compare insurance costs before .
Then go shopping for that model .
To save even more, don’t own a car, .
Hold actively managed mutual funds—the kind that pass on the most-short-term gains—in retirement accounts.
Hold —but carefully.
Don’t let the cloud rational investment analysis.
: “Diversification is a protection against ignorance.”
Follow top money-manager moves. piggyback on other smart investors.
: “The time to buy is when there’s blood on the streets.”
Beware with weak boards.
Compare benefits (including options)
Find out how at ; if expenses are high or fund choices poor, lobby for a better plan.
Don’t give Uncle Sam an interest-free loan; so you don’t overpay your taxes.
, file your tax return.
Take a cue from Mark Zuckerberg: Get maximum tax savings for your charitable buck by giving appreciated assets to a or supporting organization.
Read and by Jack D. Schwager.
: “Time is the friend of the wonderful business, the enemy of the mediocre.”
unless they’re still winning.
Purchase “ ” disability insurance.
Remember that market underperformance—just like costs— .
: Set up systems to automate desired behaviors. Leave your gym clothes at the foot of your bed. Have contributions to savings automatically deducted.
Open a spousal IRA .
If you work from home, get to protect you if the FedEx man slips.
To , make Roth 401(k) contributions, not pretax ones, while your kids are in college.
Like Warren Buffett, make that you have high confidence in.
; invest your emergency fund instead of keeping it in cash.
: Study outliers rather than eliminate them. You can learn everything there
is to know about the industry or the player from the company that is performing better or worse.
Don’t wait until expiration. Always look to .
Most stock market gains since 1950 have occurred in the period.
Over the long run, big blue chips.
Take only calculated risks on the smallest .
Move from trustee to trustee only.
Name so your heirs can enjoy the maximum years of tax deferral.
using a couples claiming strategy.
from the IRS.
Don’t cheat at the same time.
Never ignore , even if it’s wrong—the IRS won’t.
to your tax pro.
After you hit 70, take the (RMD) each year from your traditional IRAs or face near-confiscatory tax penalties.
If you don’t need your RMD, consider to a charity.
, even if you’re still healthy.
. What happens to property if someone dies without one (intestate) varies by state and might not be what you would want.
: “No matter how serene today may be, tomorrow is always uncertain.”
for its replacement value; buy flood insurance if there’s a risk of water damage.
, and keep a copy on the cloud or on an external drive at work; fires and floods happen.
Maintain at least some financial accounts .
: “Know what you own and know why you own it.”
Have your kid read by Joel Greenblatt.
that are really worth even less.
Read the classic by Fred Schwed Jr.
Run from a pitchman
: Speculate only with a separate small portion of your capital.
Snitch on tax cheats and collect .
Learn what behavioral economists have found about —so you can try to avoid these common and expensive mistakes.
Understand , which rebalance assets daily.
: “Every nonprofessional who operates on margin … is ipso facto speculating.”
, even if you’re still covered by your workplace insurance, to avoid having to pay a penalty later.
: “No strategy can make up for inadequate savings or premature retirement.”
Start saving for retirement in your 20s to put at your back.
Use the : Divide your expected percentage return into 72 to figure how long it will take you to double your money.
Never sell a stock .
: “When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
: “An investment in knowledge pays the best interest.”
Use ETFs to .
Don’t try to impose on the market.
Set up 10% trailing to avoid unexpected nosedives in your portfolio.
: You have to be willing to change your mind. If you are a stubborn mule, you’ll get killed.
Read , Benjamin Graham’s Intelligent Investor.
Be a vulture investor: Buy distressed bonds at pennies on the dollar and David Tepper.
Pay attention to . When the 20- or 50-day average crosses below the 200-day average it’s bearish.
Monitor the level of fear in the market with the CBOE put/call ratio and the .
Get tax help —they carry tax benefits but also a nasty alternative minimum tax trap.
Pay public school tuition for your overachieving teen by getting steep discounts at .
Don’t ; you’ll regret it come retirement.
Read by John Train.
Never buy anything from a .
Be alert for the that a bubble is forming.
Use as contrarian tools.
Don’t confuse in markets.
—not a 401(k)—without penalty for a first-time home purchase.
growing tax free for retirement while you cover medical deductibles and copays from your current income.
Use , raising your exposure to stocks as you become a more confident investor.
Know before you buy.
Read such as Warren Buffett and Jeremy Grantham online.
Beware of .
When stuck paying accelerate some income.
Rent out for two weeks a year, tax free.
Most people don’t need a whole life policy; buy before your first child is born.
: “You only find out who is swimming naked when the tide goes out.”
Save $40,000 or more by sending your overachiever to community college and then have her to a top public university or the Ivy League.
Save on a master’s—for yourself or kids—by earning it in one year.
Have your eldest child take before college so that more than one child is in school at the same time—you’ll get more financial aid.
Rothify— make sense in more cases than most people realize.
Time 401(k) contributions to .
Factor your individual health and life expectancy into your decision on .
Use to help you determine the best strategy to maximize your Social Security benefits.
Put junk bond funds in .
If your spouse dies, to preserve his $5.25 million estate/gift tax exemption ( in 2014) for your own use later.
Buy late in life to avoid their tax drawbacks.
Only buy trading at discounts to net asset value.
Invest in businesses with .
Remember, the market’s overall trend.
Spend —it will give you flexibility to pursue the big opportunity.
: To get really rich, copy the hedge fund, private equity and VC masters and “get your hands on somebody else’s money.”
: “Investors should remember that excitement and expenses are their enemies.”
Watch out for like 529s and variable annuities.
before there’s a claim against you; after-the-fact moves can backfire.
Check your at .
Remember Bernie Madoff: Make sure your investment advisor in an account with an independent custodian.
: Don’t try to reinvent the wheel. Instead, intelligently and efficiently apply what is already well known.
: “You don’t have to make money back the same way you lost it.”
When , plan ahead and you may be able to save big on tax.
where jobs are plentiful.
Take $500,000 per couple in gains on the , tax free.
Don’t be afraid —you can now claim up to $1,500 a year, with minimal recordkeeping.
Review the assumptions an ex-employer has made in . Mistakes aren’t unusual.
Own like GLD.
When pundits declare the death of “buy-and-hold” it could well be .
: “It’s optimism that is the enemy of the rational buyer.”
: “ ‘Efficient markets’ does not mean that the price of every security at every moment in time is correct.”
Look for undiscovered stocks with .
Understand how the businesses you invest in make money.
If the short sellers are swarming around your stock, .
When company insiders buy, .
: Those who want “freedom from concern” must accept lower returns.
: It is “far better to buy a wonderful business at a fair price than to buy a fair business at a wonderful price.”
: “Avoid the temptation to follow the herd.”
: “Your time is limited, so don’t waste it living someone else’s life.”