Simple Rules for Investing


If you are new to investing, here are a few basic rules to keep in mind as you venture forward. As you know, there are no guarantees when it comes to investing, but following these tips–as well as heeding the sound advice of your broker or financial advisor–may help you stay out of trouble.

  • Know yourself, your timelines, and your risk tolerance 
  • Do not invest borrowed money 
  • Stick with investments that you can understand and evaluate 
  • Avoid get rich quick schemes that promise riches without effort 
  • Be willing to keep what you buy 
  • Never accept an investment that must be sold under pressure 
  • Consider investments that have “utility value” (they are useful to someone else) 
  • Do not count on selling the investment to make payments on it 
  • Do not risk more than you can afford to lose
  • Remember–if it sounds too good to be true, it probably is.

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