3 easy-to-keep investment New Year Resolutions

Contribute to your retirement account

Contributing to your retirement account is one of the most important investment resolutions you can make. A retirement account, such as a 401(k) or IRA, is a tax-advantaged investment vehicle that allows you to save for retirement while also potentially reducing your tax bill.

One of the easiest ways to start contributing to your retirement account is by setting up automatic contributions. This means that a certain amount of money will be automatically transferred from your bank account to your retirement account on a regular basis, such as every paycheck. By making the process automatic, you can ensure that you are consistently saving for retirement without having to think about it.

You can start small, with a small percentage of your paycheck, and gradually increase the amount over time. This will help you build your savings without putting too much strain on your budget in the short term. Additionally, if your employer offers a matching contribution, make sure you contribute enough to take full advantage of the employer's match.

Another great thing about retirement accounts is that the money you contribute is not subject to taxes until you withdraw it, meaning you will be able to save more money in the long run.

In summary, starting to contribute to a retirement account is an easy and effective way to start saving for your future. By setting up automatic contributions, gradually increasing the amount, and taking advantage of any employer-matching contributions, you can build your savings over time and ensure a comfortable retirement.

Diversify your portfolio

Diversifying your portfolio is an important step in managing risk and maximizing returns. Diversification means spreading your investments across different asset classes, such as stocks, bonds, and real estate. This can help to minimize the impact of any one investment performing poorly on your overall portfolio.

When it comes to stocks, diversifying means investing in a variety of companies across different sectors and industries. This can help to reduce the risk of your portfolio being affected by the performance of any one company or sector. Additionally, you can consider investing in international stocks to diversify your portfolio even further.

Bonds are also an important component of a diversified portfolio. They tend to be less volatile than stocks and can provide a steady stream of income. By including bonds in your portfolio, you can reduce the overall risk of your portfolio and provide a balance to the potential ups and downs of the stock market.

Real estate can also be a good diversification option, as it tends to perform differently than stocks and bonds. By investing in real estate, you can potentially benefit from rental income and property appreciation.

It's important to note that diversification does not guarantee a profit or protect against loss. It's a way to spread your risk, but it's not a guarantee that you will make money.

In summary, diversifying your portfolio is a key strategy for managing risk and maximizing returns. By spreading your investments across different asset classes, such as stocks, bonds, and real estate, you can minimize the impact of any one investment performing poorly on your overall portfolio. By diversifying your portfolio, you can ensure that your investments are better able to weather market fluctuations, giving you a better chance of reaching your investment goals.

Review and rebalance your portfolio regularly

Reviewing and rebalancing your portfolio regularly is an important step in maintaining your investment strategy and ensuring that your portfolio remains aligned with your goals and risk tolerance.

The process of reviewing your portfolio involves monitoring the performance of your investments and assessing whether they are still in line with your goals and risk tolerance. This means looking at the returns of your investments, as well as any changes in the market or economy that may affect their performance. By reviewing your portfolio regularly, you can identify any issues or opportunities that may need to be addressed.

Rebalancing your portfolio involves making adjustments to your investments to ensure that they continue to align with your desired asset allocation. This may involve selling some investments that have performed well and using the proceeds to purchase other investments that are underperforming. It may also involve buying more of an investment that has performed poorly but that you still believe in its long-term potential.

The key is to make sure that your portfolio is not too heavily weighted in any one asset class or investment. This helps you to manage risk by keeping your portfolio balanced.

It's important to note that rebalancing should be done from a long-term perspective and not based on short-term market fluctuations. It's also a good idea to review and rebalance your portfolio at least once a year, or whenever there are significant changes in your investment goals or risk tolerance.

In summary, reviewing and rebalancing your portfolio regularly is a crucial step in maintaining your investment strategy and ensuring that your portfolio remains aligned with your goals and risk tolerance. By monitoring the performance of your investments and making adjustments as necessary, you can help to minimize risk and maximize returns over time. It's a good practice to review and rebalance your portfolio at least once a year, or when there are significant changes in your investment goals or risk tolerance.