6 Rules

Any experienced investment professional will tell you: There's no quick way to achieve financial success, but there are certain rules that can make you a better investor. Here are six to embrace.

1. Know your objective. Establish a goal. Maybe it's a comfortable retirement. Perhaps it's a college education for a child or grandchild. Whatever it is, make sure you're clear about what you want to accomplish. How much time do you have to reach the goal? Only then can you truly take steps toward where you want to be.
   
   
2. Set up a regular investment plan. Investing regularly in seeking your financial goal ensures that you'll always have a flow of assets going to work for you. The sooner you begin contributing money toward your goal, the longer your money has time to compound. Compounding is the process of reinvesting your earnings so they can create additional earnings for you.
   
   For example, if you invested $200 monthly in an investment that earns 8% annually, you'd have $36,025 in ten years and $281,710 in 30 years. The more you invest, the greater your potential. For instance, if you added another $100 each month to the same investment, you'd have $54,037 in ten years and $422,565 in 30 years.
   
   
3. Create a diversified portfolio. Diversification means putting your assets in a variety of investments. This helps to reduce risk, because no two investments are likely to go up and down in price at the same time, all the time. Some will be up, while others may be down. But those that rise in value will help offset the losses of those that decline.
   
   
4. Rebalance periodically. Investing is not a one-time event. As our needs change, so should your investment strategy. Moving assets from one investment to another is called rebalancing. It's as essential to investment success as knowing your financial goal.
   
   For example, if you're interested in securing a comfortable retirement, you would make investments designed to achieve that goal. But if your life changed and now you required income, you would want to select investments that generate income.
5. Think long-term. Don't let the market's daily ups and downs scare you into selling a fundamentally sound investment when you're investing for a long-term financial goal. That's a mistake many individuals unfortunately make. In fact, if you've got a good investment, consider market downturns as opportunities to purchase more shares of your investments at lower prices. When investing long-term, think long-term.
6. Rely on a professional. In today's fast-paced financial world, it's difficult for casual investors to monitor the markets and stay on top of emerging investment opportunities. That's why it's wise to establish a relationship with a financial professional who will take the time to understand your needs.

ENB Associates Inc. is a wholly owned subsidiary of Evans National Bank. Securities are offered by O'Keefe Shaw & Co., Inc. Member NASD, and SIPC. Products purchased through O'Keefe Shaw may lose value, are not deposits with obligations of, or guaranteed by Evans National Bank or affiliates and are not insured by the FDIC.