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Don McGraw is a financial advisor with Edward Jones and moved his practice to Dripping Springs 3 years ago and is a member of the Rotary Club of Dripping Springs. Don shared some thoughts on building a solid foundation for investing.
Conduct a review of your financial needs:
1. Determine where you are today
2. Determine where you want to be
3. Determine if you can get there
4. Determine how to get there
5. Determine how to stay on track
Rules of Investing:
1. Develop a strategy by considering age and risk tolerance
2. Stick with quality investments by avoiding fads; okay to consider investment grade bonds
3. Diversify by investing in a variety of sectors and stocks such as international and domestic, income funds, bonds. With Bonds, you're the bank funding the bond and always take them to maturity to get 100% of your investment and interest. Consider dividend paying stocks and mutual funds. Remember that we invest to stay ahead of inflation.
4. Invest for the long term
5. Focus on what you can control: Plan, budget, review. You can control your savings and spending habits, have an emergency fund and level debt. You cannot control the stock market.