Chapter 17. Selecting a Strategy That's Just Right for You

In This Chapter

  • Basing your investing strategy on your needs and time frame

  • Deciding where and how to allocate your assets

  • Recognizing when to unload your stocks

Stocks are a means to an end. What end are you seeking? You should look at stocks as tools for wealth building. Sometimes they're great tools, and sometimes they're awful. The results you get depend on your approach. Some stocks are appropriate for a conservative approach, while others are more suitable for an aggressive approach. Sometimes stocks aren't a good idea at all. Golly! A stock investing book that suggests that stocks aren't always the answer! That's like a teenager saying, "Dad, I respectfully decline your generous offer of money for my weekend trip, and I'd be glad to mow the lawn."

In this chapter, I help you select a stock-investing strategy based on your personal circumstances and the amount of money you have to invest. I also provide tips on when to sell your stocks.

Laying Out Your Plans

A senior citizen in one of my investment seminars in 2000 wanted to be more aggressive with his portfolio, and his broker was more than happy to cater to his desire for growth stocks. Of course, stocks got clobbered in the volatile bear market of 2000–2002, and yes, he did lose lots of money. However, I soon discovered that even after the losses, he still had a substantial stock portfolio valued at over $1 million. He had more than enough to ensure a comfortable retirement. ...

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