Everyone lives his or her life differently. Everyone has complicated emotions about money. So investment decisions are highly personal and unique to each person. Still, there are some basic rules that apply to most investors. Following are four sound investment strategies for everyone.

  1. To provide liquidity for emergencies, you should probably always have a cash reserve in a money market fund, traditional savings account or CD no matter what your life stage.
  2. If you can tolerate even a little risk, you should probably always have some portion of your portfolio in stocks to help protect your savings from being devalued due to inflation.
  3. Another good idea is scheduling annual reviews of your investments with a financial advisor. This habit will keep you up to date on your investments. It will also help you and your advisor spot potential problems in your investment strategy.
  4. Every investment decision should include tax considerations. Investments can be taxable, tax deferred, or tax free. You should be aware of the taxable status of your investments. Take that into account when setting up and reviewing an investment strategy.