20 investment tips for 2020

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Want to put together an effective investment plan with an appropriate long-term allocation to stocks, bonds and other asset classes? Here are 20 investment tips for 2020.

This will enable you to put together an effective investment plan with an appropriate long-term allocation to stocks, bonds and other asset classes.The earlier you start saving for your goals, the more time your investments will have to benefit from the compounding effect of reinvested income and capital accumulation.Investing your money for five years or more is generally a good idea. Investing is best suited to long-term financial goals, like saving for your retirement.

Historically, equities outperform other asset classes such as cash and bonds. Equities have generally given investors a 6% real return over time, compared with a 2% real return from bonds.It is difficult to predict interest rates, exchange rate movements or the stock market. Rather concentrate on what is actually happening to the businesses in which you are invested.Investment diversification is one of the fundamental building blocks of a solid portfolio.

 

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