Five Keys to

By the Editors of Kiplingers

Personal Finance magazine

In partnership with

for

Investing

Investing
Success

2 | Five Keys to Investing Success

Table of Contents
1
2
4
6
7

Key #1: Make Investing a Habit

Key #2: Set Exciting Goals
Key #3: Dont Take Unnecessary Risks
Key #4: Keep Time on Your Side
Key #5: Diversify
Glossary of Investment Terms you Should Know

About the Investor Protection Trust

The Investor Protection Trust (IPT) is a nonprofit organization devoted to investor education. Over half of all Americans are now invested
in the securities markets, making investor education and protection
vitally important. Since 1993 the Investor Protection Trust has
worked with the States and at the national level to provide the independent, objective investor education needed by all Americans to
make informed investment decisions. The Investor Protection Trust
strives to keep all Americans on the right money track. For additional
information on the IPT, visit www.investorprotection.org.

2005 by The Kiplinger Washington Editors, Inc. All rights reserved.

Make Investing a Habit | 1

nves ting of fers the best means to achieve your long-term financial
goals. But any discussion of investing must begin with this simple truth:
Investing requires taking risks. Your investment success depends in part on
your ability to control those risks without passing up reasonable returns.

Your task is to create a plan that suits you and then stick with it. You can achieve
this goal regardless of your current style of saving and investing. If you dont want
to spend a lot of time on your finances, you should create a plan that doesnt require
a lot of time. There are lots of successful investors who carefully select the assets in
their portfolios so that they need to spend only a few hours each year monitoring
performance. Other investors prefer to pay close attention to whats happening with
their money.
Whichever description fits you, you can accumulate substantial sums of money by
applying the following five keys to investment success. Note that these are keys,
not secrets. There really arent any investment secrets. The methods employed by
successful investors are well known. This booklet presents a birds-eye view of these
methods.

Key #1: Make Investing a Habit

For most people with a small amount to start with, the best chance to acquire measurable wealth lies in developing the habit of adding to your investments regularly
and putting the money where it can do the most for you.
The rewards can be considerable. Suppose you take $5,000 and put it in a savings
account, where it earns a nice, safe 2.16% interest. Twenty years later you reclaim
your deposit and discover that it has grown to $7,666 and change. Not bad, but
you can do better.
Meanwhile, your brother-in-law puts $5,000 in one-year certificates of deposit
(CDs) at the same bank, with instructions to roll over the proceeds into a new certificate every 12 months. In addition, every month he buys another CD for $100
and issues the same instructions. Over 20 years he earns an average of 3.44%
interest. His nest egg: more than $44,000.
Thats a lot better, but its not going to finance a worry-free retirement. Suppose
your goal is a lot loftier than that: Youd like to have a nest egg of $250,000.
Youve got 20 years to get there and $5,000 to start. Youre willing to investigate
investment alternatives that should boost your return above what youd earn in a
bank account. Whats a reasonable return to plan on, and how much will you have
to contribute along the way?
Since 1926, the stocks of large companies have produced an average annual return of
more than10%. (Remember, that includes such lows as the Great Depression, Black
Monday in 1987 and the stock slide that followed September 11.) At 10%, with
$5,000 to start, youll reach your $250,000 goal if you contribute $279 a month to
your investment account. With an 11% return, $235 a month will get you your
quarter-million in 20 years. Less-risky plans can also work wonders. Starting from
zero, putting just $50 a month into an investment that pays a compounded average
annual total return of 11% for 20 years will get you a nest egg of almost $43,700.
Stick to the plan for 30 years and youll have more than $141,500.

Since 1926, the

stocks of large
companies have
produced an
average annual
return of more
than 10%.

1
KEY #

2 | Five Keys to Investing Success

Another possibility is to start small and gradually increase your monthly investment
as your income grows. Assume you earn an average of 10% per year. Put $50 a
month into your account for five years, raise it to $100 a month for the next five,
$200 a month for years 11 through 15 and $300 a month for years 16 through 20.
Then youll have more than $87,600. Boost your monthly amount to $400 for years
21 through 25 and your fund will grow to more than $175,400.
These examples are simplified, of course, because they dont take taxes or broker
commissions into account. But the point is this: Making investing a habit is a key
to making investing a success.

Key #2: Set Exciting Goals

Investment goal-setting is an intensely personal affair that will be guided by your
own style and preferences. But if you set generalized goals, such as financial security or a comfortable retirement, youre going to have trouble measuring your
progress along the way. You may even struggle to maintain interest in the project.
Vaguely defined investment goals can lead to halfhearted efforts to achieve them.

2
KEY #

Better to set goals you can grab onto, goals that excite you. Instead of financial
security, why not $500,000 net worth by age 60? Instead of a comfortable
retirement, why not an investment portfolio that will yield $2,000 a month to
supplement my pension and social security? Now those are real goals. You can put
a price tag on each and use that as an incentive to keep up your investing discipline.
Setting investment goals is a lot like reading a map: Before you can get to where
you want to go, youve got to figure out where you are. An easy way is to fill out
the personal balance sheet on page 3. (Theres an online version of this worksheet on
Kiplingers Web site, www.kiplinger.com/tools/networth.html.) You may have to do
a little guesstimating about the value of your furniture, jewelry and so forth, but
dont spend a lot of time trying to be precise about those numbers. Its the financial
portion of your balance sheet that should concern you the most: money in savings
accounts, stocks, bonds and mutual funds, real estate and the like, plus your equity
in pension plans and other sources of current and future income.
Another approach is to pose a few basic questions: How much money could you
raise if you were to sell everything you own and pay off all your debts? How difficult would it be to get your hands on that money? And where would that money
come from? What you learn about where your money is will also influence your goal
setting and the routes available to get to your goals.
There are no right or wrong investment goals. They will be influenced by your
income and job security, your risk tolerance and your age. In addition, the time you
have to achieve your goals should influence the kinds of investments you might consider. Most people have several goals at once.
SHORT-TERM GOALS.
Suppose that a vacation in Europe is one of your goals and that you would like to go
next summer. Such a short time horizon suggests that the stock market wouldnt
be a good place to invest the money youre setting aside for the trip. The market is
subject to wide swings, and you wouldnt want to be forced to sell your stocks in a
downswing just because the time had come to buy your airline tickets. Dont put
into the stock market any money that you know you will need in the next two or

Set Exciting Goals | 3

WHERE YOU STAND NOW: YOUR PERSONAL BALANCE SHEET

Use this worksheet to calculate your current assets, liabilities and net worth. When you know where
your current net worth comes from, you can see where your financial position is strong and where it
is weak. This worksheet, along with the investment-mix worksheet on page 8, lays the necessary
groundwork for setting your investment goals and making plans to reach them.
ASSETS

Cash in savings accounts

Cash in checking accounts
Cash on hand
Certificates of deposit
Money-market funds
U.S. savings bonds
Market value of home
Market value of other real estate
Cash value of life insurance
Surrender value of annuities
Vested equity in pension plans
Vested equity in profit sharing
401(k) or 403(b) plans
Individual retirement accounts
Keogh plans
Stocks
Bonds
Stock mutual funds
Bond mutual funds
Real estate investment trusts
Other investments
Collectibles

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

Precious metals
Estimated market value of:
Household furnishings
Automobiles and trucks
Boats, recreational vehicles
Furs and jewelry
Loans owed to you
Other assets

$
$
$
$
$
$
$

TOTAL ASSETS

(A)

LIABILITIES

Balance owed on mortgages

Auto loans
Student loans
Home-equity credit line
Other credit lines
Credit card bills
Other bills

$
$
$
$
$
$
$

TOTAL LIABILITIES

(B)

CURRENT NET WORTH

(A minus B)

three years. Low-risk vehicles such as certificates of deposit, for example, that
mature about the time youll need the cash or a money-market fund that allows
you to withdraw your cash instantly by writing a check may be a better choice.
MEDIUM-TERM GOALS.
Maybe youd like to buy a house or move to a larger one within three or four years.
With more time, you have more flexibility. Safety is still important but you are in
a better position to ride out bad times in the financial markets and take on a little
more risk. For medium-term goals like these, consider longer-term CDs that pay
more interest than the short-term certificates you would buy to help finance your
vacation trip. You could even consider mutual funds that invest in stocks that pay
good dividends but dont tend to fluctuate much in price. That could give you high
income (for reinvesting in more fund shares), a chance to ride along if the market
zooms, and pretty good protection against all but a steep drop in stock prices.
LONG-TERM GOALS.
A comfortable retirement is probably the most common of all financial goals. A college education for the kids is another common goal. For long-term goals like these,

Investment goalsetting is an
intensely personal
affair. Set goals
you can grab
onto, goals that
excite you.

4 | Five Keys to Investing Success

you can afford to take more risk. Consider a wide range of possibilities: stocks,
corporate and government bonds, and long-term CDs for diversification. Also take
maximum advantage of tax-sheltered plans, such as individual retirement accounts
(IRAs) and 529 college-savings plans. IRA earnings accumulate tax-deferred, and
contributions may be tax-deductible. 401(k) plans provide many of the same advantages and might offer a company match that will help you reach your goal.
With several years and sometimes decades ahead of you, financial assets that arent
strictly investments also come into play: home equity, pension plans and social
security, for example. Your goals and choices should be influenced by the size and
accessibility of those assets.
Your goals are likely to change, so its important to reassess them annually. For
instance, the kinds of growth-oriented investments that might be perfectly appropriate while you are accumulating a retirement nest egg and have a long-term
horizon could be inappropriate after you retire and need income to pay the bills.
Luckily, the investment universe is vast and there are plenty of resourcesmagazines, newspapers, books, the Internet, financial adviserswho can help you decide
how to modify your portfolio as your circumstances change.

Key #3: Dont Take Unnecessary Risks

Risk is the chance
you take that
your investments
will lose money
or earn less
than the rate

Most people would say that risk is the chance you take that youll lose all or part
of the money you put into an investment. Thats true as far as it goes, but it doesnt
go far enough. A more complete definition of risk acknowledges the availability of
investments carrying virtually ironclad guarantees that you will get all your money
back plus the interest promised you: Treasury securities or certificates of deposit in
federally insured banks, savings and loans, or credit unions, for instance. Also, with
all investments, even government-guaranteed ones, you run the additional risk that
your return will be less than the inflation rate. In fact, savings accounts, certificates
of deposit, Treasury bills, savings bonds and a handful of other government-backed
investments establish a useful benchmark for measuring risk:
Risk is the chance you take that you will lose your money or that you will earn less
from your investment than the rate of inflation or less than the interest available at
the time from insured savings certificates or U.S. Treasurybacked obligations.

of inflation.

3
KEY #

To put it another way, risk is the chance that you will earn less than 3% to 4% on
your money. If you cant reasonably expect to do better than that for the risk youre
taking, then theres no sense in taking the risk.
HOW CAN YOU CONTROL YOUR RISKS?
The pyramid is a useful visual image for a sensible risk-reducing strategy. Its built
on a broad, solid base of financial security: a home; money in insured savings
accounts or certificates; plus insurance policies to cover expenses if something happens. As you move up from the base, the levels get narrower, representing the space
in your portfolio is available for investments that involve risk. The greater the risk,
the higher up the pyramid it goes and, the less money you should put into it.
How much should you have in savings? Three to six months living expenses should
be your goal. Bank, savings and loan, or credit union accounts are good places to
keep this money, but look for opportunities to earn more than the .25% to 1%
interest these institutions tend to pay on their run-of-the-mill deposit accountsby

Dont Take Unnecessary Risks | 5

putting most of it in certificates of deposit, for example. You might use a moneymarket fund for at least part of this rainy-day money. Such funds arent federally
insured, but they are conservative places to invest and they often pay a higher return
than savings accounts.
Once youve built the base of your pyramid, youre ready to move up and become an
investor. One level up is the appropriate place for mutual funds that invest in lowrisk, dividend-oriented stocks and top-quality government and corporate bonds.
Individual stocks and bonds that you pick yourself are on the same level. Most
financial experts would put investment real estate on the next level up. At the very
top of the pyramid go investments that few people should try, such as penny or
microcap stocks, commodity futures contracts and most limited partnerships.
HOW MUCH RISK SHOULD YOU TAKE?
Controlling risk means more than being comfortable with an investment. Too
many investors seem perfectly comfortable with too much risk. The basic thing to
remember about risk is that it increases as the potential return increases. Essentially
the bigger the risk, the bigger the potential payoff. (Dont forget those last two
words; there are no guarantees.) That might sound exciting, but turn it around: the
bigger the potential payoff, the bigger the risk of losing.

Prudent risk
depends on your
goals, age,
income, resources
and current and
future financial
obligations.

Does this mean you should avoid all high-risk investments? No. It means you
should confine them to the top of the pyramidwhere they can never occupy a significant portion of your investment portfolio. Invest only as much as you can afford
to lose because you might in fact lose it. You should also learn to recognize the risks
involved in every kind of investment.
RISKS IN STOCKS.
A companys stock could decline because the companys revenue declines or isnt
being managed well. Or a well-managed and prosperous companys stock could fall
because investors sell millions of shares of stock of all kinds or stocks of a certain
kind. Thats what happened when the dot-com bubble burst and it drove the entire
market down, without bothering to differentiate the good stocks from the bad.
RISKS IN BONDS.
Bond prices move in the direction opposite to that of interest rates, rising when
rates fall and vice versa. But individual bond issues can be hurt even if rates in general are falling. For example, one of the rating services downgrades its opinion of the
companys stability. A bond issue thats paying an interest rate noticeably higher
than that of other bonds with similar maturity dates is probably being forced to pay
more to compensate investors for the higher risk inherent in a lower safety rating.
RISKS EVERYWHERE.
Real estate values go up and down in sync with supply and demand in local markets, regardless of the health of the national economy. Gold and silver, which are
supposed to be stores of value in inflationary times, have been decidedly unrewarding in times of tolerable inflation. Even federally insured savings accounts carry
risksthat their low interest rate wont be enough to protect the value of your
money from the combined effect of inflation and taxes.
WHAT IS A PRUDENT RISK?
It depends on your goals, your age, your income and other resources, and your current and future financial obligations. A young single person who expects his or her

6 | Five Keys to Investing Success

pay to rise steadily over the years and who has few family responsibilities can afford
to take more chances than, say, a couple approaching retirement age. The young
person has time to recover from market reversals; the older couple may not.

Key #4: Keep Time on Your Side

A penny saved is a penny earnedor so the saying goes. In fact, a penny saved may
be more or less than a penny earned, depending on when it is earned and how it is
saved. The reason is rooted in a concept called the time value of money (and its close
cousin, opportunity cost).

4
KEY #

Which would you rather have, $10,000 today or $10,000 a year from today? Of
course, youd choose the take the money now. Besides possessing the sure knowledge
that a bird in the hand is worth two in the bush, you understand that the value of
that $10,000 you have to wait a year for will be eroded by a years worth of inflation
and a years worth of lost interest on the money. To put a dollar figure on it, if inflation is 4% and you could earn 5% interest in a year, the thrill of being handed
$10,000 today is worth about 9%, or $900, more than the thrill of being handed
$10,000 a year from today.
The time value of money works against you if youre the one waiting to collect the
money, but it works in your favor if youre the one who has to pay. Success often lies
in being able to identify the proper side of the equation. You just need to keep in
mind this principlea dollar you pay or receive today is worth more than a dollar
you pay or receive tomorrow. A couple of examples illustrate why:
PAYING THE KIDS COLLEGE BILLS.
Your future rocket scientist faces a four-year education cost of about $450,000 when
he or she enters an average-priced private college in 18 years. Thats a huge sum,
but because youre familiar with the time value of money, you know the smart thing
to do is to find a way to pay those bills today, when your dollars are worth more
than they will be in 18 years. Assuming a time value for the money of 10% per
yearmeaning you could earn that much on the money between now and the time
you have to pay itthe value of the $450,000 you need 18 years from now is about
$81,000. So, if you had that amount available and salted it away in an investment
earning 10% a year, youd have the bills covered. Since its unlikely youve got that
amount, invest as much of it as you can as soon as you can to get the time value of
money working for you, easing some of the burden when the college bills come due.
PAYING OFF THE MORTGAGE.
Failing to understand how the time value of money works can cause you to think
youre doing something smart when you may not be. For instance, you may have
heard praises sung for the 15-year mortgage. Because you pay it off sooner than a
30-year loan, you pay less interest and save thousands of dollars. But the homeowner
with the 15-year mortgage parts with the money sooner than the 30-year buyer,
and the time value of money suggests some caution may be in order before making
extravagant claims of savings. Heres where opportunity costthe cost of doing one
thing and not anothercomes into play. You need the answers to two questions:
What else might you do with the extra money youd spend on the higher
monthly payments required by the 15-year mortgage?
How much could it earn if you invested it in something else?

Diversify | 7

Suppose it costs you an extra $200 a month to pay off the loan in 15 years instead
of 30. Thats $200 a month not available for something elseinvesting in a mutual
fund, for example. Say the mortgage rate is 5% and the mutual fund earns 10%.
You could benefit from that 5% difference by putting the money in the fund
instead of paying off the mortgage. That $200 a month earning 5% compounded
for 15 years grows to almost $53,500. Thats your opportunity cost to pay off your
mortgage early, and before you congratulate yourself about how much youve saved
instead of taking a 30-year mortgage, you need to subtract it from your savings.

Key #5: Diversify

There are at least three good reasons to diversify your investments.
As the adage goes, you shouldnt put all your eggs in one basket.
No investment performs well all the time; when one thing is down,
another thing tends to be up.
You may be able to increase your return by diversifying.
Some investors diversify by selecting a number of investment vehicles and dividing
their money equally among them. For instance, they might set up a portfolio consisting of equal parts cash (money-market funds, CDs, Treasury bills), bonds, U.S.
stocks, foreign stocks, and real estate. Once a year, they could adjust the mix to
maintain the dollar balance, taking the gains from the winners and spreading them
out among the losers so that their asset distribution stays the same.
But thinking in such terms can lure you into a false sense of permanence about what
is a very fluid situation. As stock prices and interest rates go up and down, the proportions in your portfolio will shift without your lifting a finger. There will also be
times when you want to shift more money into stocks, bonds or cash. Its more realistic to think in terms of ranges rather than fixed percentages. For example:
Stocks:
Bonds:
Cash:

50% to 80%
20% to 40%
10% to 25%

A core portfolio is intended not as a hard-and-fast formula but as guidance for constantly changing investment markets. Your mix should also take into account your
age, income and investment goals. For instance, as you approach retirement and
need to reduce risk to better protect your nest egg, its natural to shift more of your
assets into income-producing investments such as bonds or utility stocks and out of
stocks that have long-term potential but are subject to market reversals.
Another thing about the core portfolio: Stocks, doesnt necessarily mean individual shares. Mutual funds are often the best way to own stocks, although knowing
how to select a promising stock will make you a better selector of promising funds
as well. And bonds, doesnt necessarily mean only corporate or municipal securities. Variations on the bond thememortgage-backed securities, for instancecan
perform the same function for your portfolio, often at a more attractive return.
WRAP UP.
These keys are not secrets. Nor are they guarantees. But if you pay attention to
them as you make investment decisions youll be more likely to achieve your goals.

A core portfolio
is intended as
guidance for
constantly
changing
investment
markets.

5
KEY #

8 | Five Keys to Investing Success

ARE YOUR INVESTMENTS IN BALANCE?

Complete this worksheet at least once a year so youll know how your investment mix is changing and
can take action to bring it back into line with a mix that matches your goals and your risk tolerance.
Market Value

% of Total

CASH

Savings accounts
Money-market funds
Treasury bills

____________________________________________________________________

___________________________________________________________________

____________________________________________________________________

___________________________________________________________________

____________________________________________________________________

___________________________________________________________________

____________________________________________________________________

___________________________________________________________________

Individual shares
Mutual funds

____________________________________________________________________

___________________________________________________________________

____________________________________________________________________

___________________________________________________________________

Total Stocks

____________________________________________________________________

___________________________________________________________________

Individual bonds
Mutual funds

____________________________________________________________________

___________________________________________________________________

____________________________________________________________________

___________________________________________________________________

Total Bonds

____________________________________________________________________

RENTAL REAL ESTATE

LIMITED PARTNERSHIPS
PRECIOUS METALS
OTHER INVESTMENTS
COLLECTIBLES
Total Investments

____________________________________________________________________

___________________________________________________________________

____________________________________________________________________

___________________________________________________________________

____________________________________________________________________

___________________________________________________________________

____________________________________________________________________

___________________________________________________________________

Total Cash
STOCKS

BONDS

____________________________________________________________________

___________________________________________________________________

$ ____________________________________________________________________

___________________________________________________________________

STATE SECURITIES REGULATORS

State Securities Regulators have protected investors from fraud for nearly
100 years. Securities markets are global but securities are sold locally by
professionals who are licensed in every state where they conduct business.
State Securities Regulators work within your state government to protect
investors and help maintain the integrity of the securities industry.
Your State Securities Regulator can:
Verify a broker-dealer or investment adviser is properly licensed;
Provide information about: prior run-ins with regulators that led
to disciplinary or enforcement actions; serious complaints that may
have been lodged against them; their educational background and
prior work history
Provide a computer link or telephone number or address where you
can file a complaint; and
Provide non-commercial investor education and protection materials.
For contact information for your State Securities Regulator, visit the North
American Securities Administrators Association (NASAA) Web site at
www.nasaa.org and click on Contact Your Regulator.

GLOSSARY
Bond An interest-bearing security that obligates the issuer to pay a specified amount of
interest for a specified time, usually several years, and then repay the bondholder the face
amount of the bond.
Capital gain (or loss) The difference between the price at which you buy an investment
and the price at which you sell it.
Certificate of deposit Usually called a CD, a certificate of deposit is a short- to mediumterm instrument (one month to five years) issued by a bank or savings and loan to pay
interest at a rate higher than that paid by a regular savings account.
Compound interest This is really interest paid on interest. When interest is earned on an
investment and added to the original amount of the investment, future interest payments are
calculated on the new total.
Diversification The method of balancing risk by investing in a variety of securities.
Dividends Shares of company earnings paid out to stockholders.
401(k) plan An employer-sponsored retirement plan that permits employees to divert
part of their pay into the plan and avoid current taxes on that income. Money invested in the
plan may be partially matched by the employer, and earnings accumulate tax-deferred until
theyre withdrawn.
Home equity The difference between what you paid for your home and what you get
when you sell.
Individual retirement account (IRA) A tax-favored retirement plan. Contributions to a
regular IRA may be tax deductible, depending on your income and if you are covered by a
retirement plan at work. Earnings grow tax-deferred. Earnings in a variation, the Roth IRA,
grow tax-free, and contributions are made with after-tax dollars.
Money-market fund A mutual fund that invests in short-term corporate and government
debt and passes the interest payments on to shareholders.
Mortgage-backed securities Securities issued by government-related agencies that buy
up mortgage loans from lenders such as banks and savings and loan associations.
Mutual fund A professionally managed portfolio of stocks and bonds or other investments divided up into shares.
Risk tolerance Risk tolerance is the degree to which you are willing to risk losing some
(or all) of your original investment in exchange for a chance to earn a higher rate of return.
In general, the greater the potential gain from an investment, the greater the risk is that you
might lose money.
Opportunity cost The cost of passing up one investment in favor of another.
Portfolio The collection of all of your investments.
Stock A share of stock that represents ownership in the company that issues it. The price
of the stock goes up and down, depending on how the company performs and how investors
think the company will perform in the future.
Time value of money The concept that money today is worth more than the same
amount in the future, when inflation has reduced its value.

The following booklets from the Editors of Kiplingers

Personal Finance magazine, the Investor Protection Trust
and the American Library Association are available at
your library.
FIVE KEYS TO INVESTING SUCCESS

Make investing a habit

Set exciting goals
Dont take unnecessary risks
Keep time on your side
Diversify

What is a stock?
Types of stocks and their relative risks
How to buy stocks
Stock terms you need to know, such as price/earnings
ratio (P/E), book value, dividend yield and dollar-cost
averaging
Selling your stocks and determining earnings
Mistakes even seasoned investors sometimes make
and how to avoid them
A PRIMER FOR INVESTING IN BONDS

What is a bond?
How bonds work
Types of bonds and their relative safety
Why bonds can be an important part of your
investment portfolio
Yield and how it relates to bond prices
Bond ratings and how they can help you reduce risk

www.investorprotection.org

What is a mutual fund?

Advantages of investing in mutual funds
Cost of investing in mutual funds
Find the right mutual funds for you
What to look for in a mutual fund prospectus
Types of mutual funds and relative risk
Determining your earnings
GETTING HELP WITH YOUR INVESTMENTS

THE BASICS FOR INVESTING IN STOCKS

919 Eighteenth Street NW, Suite 300

Washington, DC 20006-5517

MUTUAL FUNDS: MAYBE ALL YOULL EVER NEED

Choosing a broker
Full-service, discount and online brokers
Opening a brokerage account
Records you need to keep
Problems with your broker
Financial advisers
How to choose an adviser
Investment clubs
WHERE TO INVEST YOUR COLLEGE MONEY

Creating a college fund portfolio based on your

time horizon
College investment vehicles
State-sponsored college savings plans
MAXIMIZE YOUR RETIREMENT INVESTMENTS

Three fundamental truths about retirement investing

Stocks, bonds and mutual funds to consider for your
retirement portfolio
Determining your portfolio mix, depending on your
time horizon and risk tolerance
Retirement investment vehicles

New Jersey Bureau of Securities

[email protected]
www.njsecurities.gov
Toll Free 866-I-Invest (866-446-8378)
P.O.Box 47029
Newark, NJ 07101