Dear investor,
In this era of AC (after corona), the key words are "social distancing", to "stay at home" to defeat the virus.
Similarly for successful investing and to meet your goals the key words are "portfolio distancing" and "stay the course".
Hence is found this interesting from www.financinglife.org, A website by Fans of "john bogle". The founder of Vanguard mutual fund.
Very simple definition of Financial jargon, which will help us in achieving "financial well-being".
The thoughts are expressed in red ( )
Read and enjoy.
A is for Assets: stocks, bonds and other stuff.(Asset allocation is the key to investment success)
Don’t fret about precision, getting close — good enough.
B is for Begin, to simply get started.( dont procrastinate, start early and invest regularly)
That’s the surest way to achieve dreams uncharted.
C for Compounding, for growth exponential.(Enough has been said and written about)
Accomplishes big results and often essential.
D for Diversify, stocks and bonds in your pie. (Diversify across asset,across time(SIP) and across geography)
Their ratio controls risk when things go awry.
E for Emergencies that come as surprises.( No need to explain, all have experienced now)
A responsible person has a reserve that suffices.
F is for Frugal, not cheap or miserly.( Spend within your means , not below your means)
It’s prioritizing your spending and your life energy.
G for “Get Rich Quick”. Dismiss these schemes brisk.(If something is too good to be true, it is, hence stay out)
Beating the market comes with a big dose of risk.
H is for Harvesting, in more advanced classes. (Tax loss harvesting to minimize tax liability)
You might sell your losers to lower your taxes.
I is for Indexing, the lowest cost way. ( Passive way of investing, ETF's )
For you get to keep what you don’t give away.
J is for Junk bonds, their tempting yields hawked.
But in bad markets, they behave more like stocks.
K is for Knowledge, about how to invest. ( Know the basics of investing)
It’s lifelong learning that will help you the best.
L is for Low-cost. We like this a lot. (Costs & tax matters)
Keep what you earn and don’t finance their yachts.
M is for Mutual funds and avoid daily trading. ( Investment vs Trading)
We’re long-term investors and eschew speculating.
N is for Noise, it’s worth tuning out. ( Ignore Media and focus on your goals)
We’re surrounded by blowhards that financial porn spout.
O for Overconfidence, a fault many have.
Feels good ‘til a bear market, then it feels bad.
P is for Penny, and the lesson we’ve learned: ( Avoid penny stocks)
A penny that’s saved equals two pennies earned.
Q is for Qualifying, to include and weed out.( Portfolio review)
It’s quite easy to do, then get out and about.
R for Retirees, and safe withdrawal voodoo. (post retirement withdrawal )
It’s all about making your money last longer than you do.
S is for Saving, automatic paycheck withdrawal.(Systematic investment plan)
What you never see, is not missed at all.
T is for Timing, from tempting purveyors. (Stay the course)
It’s only for those that believe in soothsayers.
U for U.S. bonds, as safe as it gets.(replace with govt India bonds)
Keep risk on the stock side, safe bonds for the rest.
V for small Value, these funds carry more risk. (small cap funds)
But if you seek out-performance, add these to your list.
W is for Writing a workable plan not too long. (financial plan)
Write the best you can now; and over time make it strong.
X is for X-ray, your funds — look inside.
For consistent styles, and lack of surprise.
Y is for You. How we remember thee?
Personality is revealed how you spend your life energy.
Z is for Zen, simple peace in your niche.
To know you have enough is to be rich.
There you go! That’s the ABCs of investing for beginners.
https://www.youtube.com/watch?time_continue=187&v=atZJ4lU3IBE (WATCH THE VIDEO)
SOURCE:FINANCIAINGLIFE.ORG