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InvestRight Principle #1

Five time-tested investment principles
1.  Know what you're investing for.
  Identify Your Goals
  Prioritize Your Goals
  Put a Date on Achieving Each Goal
  Portfolio Remodel
2.  Make paying yourself a priority.
3.  Make tax-smart investments.
4.  Diversify your portfolio.
5.  Choose good investments.

What are my real priorities?

Chart Explanation
Immediate needs. Do you have crucial emergency cash of three to six months of income put aside? If you don't have liquid cash available for an emergency, such as a job loss or major home repair, you may not be ready to lock up money for the long term.

Financial security. Do you want to buy a home? Are you on your way to creating a comfortable retirement? It's important to be honest with yourself. How much do you already have? How much will you need? You can't take out a loan for retirement, so this should be high on your list – especially now that pensions are becoming more scarce and the future of Social Security benefits is in question.

Helping others. Do you have children or grandchildren? You may want to give them a helping hand paying for their college education. Or perhaps you'd like to donate funds to a favorite charity.

Making dreams reality. Are there things you've always wanted to do? Of course there are. Whether it's putting money away for a once-in-a-lifetime vacation, a dream house on the coast, or owning a winery, everyone has a dream they want to make come true.

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