This is a reprint of a five part series on investing I wrote about a year ago – tips to let your winners run and protect your downside. In Part 1 of this 5 part series on general investing we discussed that there are ways to limit losses and let your winners run when you invest your money. Asset Allocation is the process on investing a certain percentage of your money in different asset classes, the object being that different assets behave differently – some are going up when others are going down. The object of the allocation is that most of the time most of the assets are going up, so the allocation will over time generate positive returns. Allocation classes are normally stocks, bonds, commodities (gold, silver, land, oil, etc) and of course, cash. A lot of the allocation classes can be further broken down (stocks into large, mid and small cap stocks; most catagories into domestic and foreign investments, etc.) It is best to figure out what percentage to allocate to each asset class, maybe at the first of the year, then a year later check again and rebalance your porfolio to get things back in line. [...]
CPA Financial Musings: Investing Tips Part 1 of 5 – Investing To Protect Assets and Minimize Losses
This week I am reprinting a five part posting on general investing I wrote about a year ago. I used to have my series 7 and 66 brokerage licenses and have managed my own investment accounts for about 18 years. There are many ways to find stocks, bonds and other assets to invest in – investment newsletters, research services, your brother in law, etc. but the most important item is to protect your investments so that you minimize losses and let your winners run. The old addage of buying low and selling high is so obvious we usually pay it lip service, but it is amazing how many people don’t really follow it. Next in Part 2 I will talk about general asset allocation and industry diversification – ways to help prevent a disaster in one particular area that can kill your portfolio. See you then. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa
Tax Musings of a CPA: A Summer Adjustment Can Prevent a Tax-Time Surprise
In the summer, when things are usually not as stressful from a business or tax standpoint, it is a good time to quickly review how your tax situation has changed from the previous year. If you had a change in 2014, now would be a good time to update your income tax payments to federal and state governments for the year. See this IRS regarding updating W4s and estimated tax payments: http://content.govdelivery.com/accounts/USIRS/bulletins/c573b1?reqfrom=share This way there won’t be a huge surprise at tax time, either with a huge overpayment or a big tax bill. Talk to your tax preparer – they can help you estimate the tax so you have information to work with. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa