Our 10 Simple Rules of Investing

A few years ago, Money magazine conducted a survey asking people about their biggest goals.

Here's a sample of what they found:

• 56% dreamed of starting a business
• 66% expect to eventually be millionaires
• 69% think that they need $2,000,000 to retire early
• 31% are saving enough for college
• and 56% want a house on the beach

Do you see yourself in there? Well here's the good news. These are ALL attainable goals. But (isn't there always a but?)not unless you understand "risk" and "reward" investing. That's especially true right now with this crazy market as we work through the housing and sub-prime crises.

The truth is your money isn't going to work hard enough for you if you park it in a savings account. When interest rates are low, as they have been in recent years, you might as well put your money under the mattress.

A diversified investment portfolio is the only way to earn enough money over time to beat inflation. No matter what your financial goals - buying a first home, buying a second home, buying a car, college for your kids, a secure retirement ...you fill in the blanks—to achieve these goals you have to put some of your money to work making you more money.

Should You Go It Alone?

Well, first of all, you don't have to! We have all kinds of advice–from our experience as fellow investors, as former stockbrokers, and from 20-plus years of helping people just like you reach their financial goals–here at Dolans.com.

We hope you'll take full advantage of our resources because we're big fans of picking your own stocks instead of putting money into an equity mutual fund...if you're willing to make a serious effort. True, in a mutual fund you spread your risk somewhat because the fund managers invest your money into many different stocks. However, even in a no-load fund you pay fees that reduce your earning power, and what's more, you are trusting money professionals who have reasons to invest that may have nothing to do with your best interests.

You may also ask a broker or financial planner to help you pick your stocks, but if you suspect he/she isn't monitoring your portfolio with the diligence you'd like, you are probably 200% right.

We believe that many individual investors, with some vigilance and homework, can become skilled at picking their own stocks. If you haven't tried this before and want to start, read on!

Everyone should keep a close watch on their investments, and we've found you're more likely to do that when you buy stocks that you've picked yourself, or at least bought after doing some of your own reading apart from your broker's recommendation.