Investors must recognize and adjust their portfolios according to what financial phase they are in, or what Reed calls the Wealth Creation Phase and the Wealth Maintenance Phase.

Among Reed’s other rules, there is the one that warns investors to avoid chasing “the hot dot stock;’’ another that exhorts investors to always feel free to ask questions of their financial advisors;
and another that emphasizes the importance of understanding the long-term difference between investments in fixed income products and equities.

In his last rule, “There is No Free Ride,’’ Reed, who begins his book by remembering a devastating tornado, aptly closes with a natural world adage: “Develop a plan. Work hard to implement your plan. And, as they say in farming, ‘God willing and the creek don’t rise, you’ll get where you want to go.’ ‘’

Top 40 Rules of Investing by Scott Reed. The Nautilus Publishing Company. 83 pages. $17.95.

Eleanor O’Sullivan is an award-winning freelance journalist who writes for Financial Advisor magazine.

First « 1 2 » Next