(WJBK) - Sheldon Rosenberg joins us for this Money Monday segment to give us his five tips for investing. He's the managing director at Baird Securities in Birmingham, The Rosenberg Group. You can get more information at www.RosenbergGroupBaird.com. You can get his tips below, and by watching his interview in the video player above.
1. Diversify in both bull and bear markets, investments perform differently, so it's always important to diversify in more than one category.
a- Asset Category---Equities, Fixed Income, Alternatives, Cash
b-Asset Class-Large Cap Growth Equities, Large Cap Value Equities, Mid Cap Equities, Small Cap Equities; Short-term bonds
c-Industry Sector-Technology, Health Care, Consumer Staples
intermediate-term bonds, long-term bonds, tax-exempt bonds; real estate, commodities
d-Geography-Domestic, Developed International markets, Emerging markets
e- Risk level -Not having too much concentration in any one individual security
2. Have Discipline. Investors should be long term minded. History has shown that market corrections are a normal occurrence and that investors have been rewarded for their patience.
3. Rebalance Regularly By rebalancing one's investment portfolio regularly, it may decrease volatility and potentially increase performance.
4. Buy low, sell high Look to buy investments that have a historically good growth rate, yet whose current price seems to be cheap.
5. Get help from an experienced financial advisor As important as getting medical advice from a licensed physician, it's just as important to get investing advice from a professional financial advisor.