1. Establish a financial plan based on your goals

• Be realistic about your goals
• Review your plan at least annually
• Make changes as your life circumstances change

2. Start saving and investing today

• Maximize what you can afford to invest
• Time in the market is key
• Don’t try to time the markets—it’s nearly impossible

3. Build a diversified portfolio based on your tolerance for risk

• Know your comfort level with temporary losses
• Understand that asset classes behave differently
• Don’t chase past performance

4. Minimize fees and taxes

• Markets are uncertain; fees are certain
• Pay attention to net returns
• Minimize taxes to maximize returns

5. Build in protection against significant losses

• Modest temporary losses are okay, but recovery from significant losses can take years
• Use cash investments and bonds for diversification
• Consider options as a hedge against market declines—certain options strategies can be designed to help you offset losses

6. Rebalance your portfolio regularly

• Be disciplined about your tolerance for risk
• Stay engaged with your investments
• Understand that asset classes behave differently

7. Ignore the noise

• Press makes noise to sell advertising
• Markets fluctuate
• Stay focused on your plan