Navigating The Stormy Markets June 26, 2012My MoneyOff

It’s a big, bad world of investments out there.

Whether you’re a stock veteran, or just dipping your toes in – here’s what you need to know about investing in today’s volatile markets.

“Studies show women have proven themselves as better investors than men over time,” says Beata Kirr, senior portfolio manager at Bernstein Global Wealth Management.

That’s a good start! So how do you strategize where to put your money?

Understand how much you can spend. “Calculate how much spending your portfolio can support throughout your life, under conservative market assumptions,” says Kirr. This is your CORE portfolio.

Consider the risk quotient. An investment may look like it has a great return. But if it takes a lot of risk to achieve it, it’s exactly like your existing investments, or has negative tax consequences, it may not be as attractive as you think.

Think long-term. Investors often make this mistake – spending too much on investments that have done well recently.

You can sustain investments through rebalancing. This means “selling the winners and buying the losers in a disciplined way,” says Kirr.

The Wall Street Journal’s Guide to Understanding Money & Investing is an old-fashioned paperback, but comprehensive. Mint.com tracks spending and creates budgets. For all those unfamiliar words, Investopedia is a go-to resource.

The jargon might be intimidating, but you already handle so much else at work and at home – with some self-education – you’ll have this down in no time!

Bonus PINK Link: Read how diversifying your investments helps to navigate uncertain markets.

What are your

By Ruchika Tulshyan

“When buying shares, ask yourself, would you buy the whole company?”
Rene Rivkin

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