After reading this article, you will be able to retire without worry.

Many years ago, when I first shot the "Win Ben Stein's money" program, I had a makeup artist named suize. When suize gives me hair and foundation, I always read the Wall Street Journal or Barron's magazine, or call my buddy Phil demuth to discuss investment issues. Suize said at least once a week: "I must learn all the ways to make money by investing. "
I really don't know how to build this model, because it is impossible to understand all the investment methods. No one can make the right decision every time-that is, it is impossible to make a profit every year. Bill Miller, Legg Mason value Trust's legendary investment manager, whose performance has exceeded S & P (S & P) for 15 consecutive years ), but last year he lags far behind this indicator. Warren. warren Buffett may be the smartest investor in our time. If not at a low position of over $40, he would sell Coca-Cola shares at a high position of over $80, he will have billions of dollars in his bags. The hedge-fund managers of giant bull's hedge funds, who usually have hundreds of millions of dollars each year, suddenly lose their standards, lose billions of dollars, and take their jobs, although it does not happen frequently, it is also heard.
I believe that you must understand the feeling that the stock you sold has quadrupled in the next few years, or the stock you bought for 15 yuan is now sold for a fraction of the money. I have also had such experiences, and there are still many. This is why I have summarized some simple rules and made investments based on these rules. I think of them as the "Zen" of investment, because they will eventually become instinct after you gain an in-depth understanding. You don't have to bother thinking about it. You only follow them.

Rule 1: do not try to influence the market, but follow the market (instead of trying to time the market, try to tie it .)

A few months ago, I was lucky to have dinner with Warren Buffett at a strange restaurant called Piccolo Pete's in Omaha. When we sat down at the desk on the dance floor at the disco, I asked him what he suggested best for an ordinary investor. He smiled and said, "understand your limitations ". He explained that ordinary investors are unable to find stocks that will exceed market expectations, and their investment managers are not capable of doing so. So unless you are yourself, don't think about leading the market. Instead, index fund is used to spread the internet. Buy a fund that can keep up with Standard & Poor's 500 (S & P500) and even the entire U.S. stock market. If your market revenue is about to be locked every year
10%, your benefits will be considerable.
If you want to copy the creativity of Master Buffett, buy the shares of his company, Berkshire Hathaway. It's not a low-price stock-one of its B shares is worth $3500-but in the past 25 years its average rate of return has reached
25%. And its extensive shareholding makes it as variable as some mutual funds. We strongly remind you to pay attention to the benefits of Berkshire Hathaway in the economic downturn. My warren will never wait for you forever.
So if you want to rent a house or consider buying a house, or you want to invest in a property that can be rented out, you can make money.

For those who don't want to buy Buffett's shares: You may be more focused on cities with higher growth, such as Gary, Ind .) spokane, Wash .) corpus Christi, Texas, to find cheaper deals. All real estate markets are regional, so make sure to investigate your region.

Rule 2: When you plan to sell, buy (when you're trying to sell, buy .)
When your stock goes deep, you will instinctively want to cut your meat and transfer your money to safer investment areas, such as bonds or money-market funds ). This is a human nature and a huge mistake. When the market has been diving for several days or months, it is a chance to make a lot of money.
In an annual report a few years ago, Buffett explained that no matter whether a stock is overestimated or undervalued, its ownership is the same company. So when the stock market sells a company cheaply, this is the best time to buy. The opposite is true: when the market reaches a new high, you want to go into the market. Never. This is not necessarily a sell-off, but if you invest in your own tax account, you should buy less.

Important: If all your investments are made using a tax-free account or a personal retirement Account (IRA, Individual Retirement Account), keep or increase your investment, regardless of the market trend.

Rule 3: Collect sectors .)
The best friend of investors is time. Your purse needs to grow slowly and intelligently. This means you should save money as soon as possible. For you stock players, remembering historical trends shows that the entire market performs well in the election year, especially in the second half of the year.
However, you still have a good friend who you don't need to always think about: diversity. You certainly don't want to break all the eggs in the basket. Make sure that your investment includes the entire investment area. So if the energy stocks crash, you may be able to balance them on the Financial Services stocks or health stocks. This is another reason for investing in the S & P 500 index fund: it actually contains all kinds of stocks.
Similarly, you need to diversify your investment globally. It is mainly because of the huge trade deficit in the United States, and the dollar may continue to depreciate for a long time. This means that you can count your currency in foreign stock or bond markets to make money, for example, your euro or Yen can buy more dollars when you sell. Pay special attention to developing countries such as China, India, and Russia.
--- In the long run, they will do well. Although, as we saw in March, the development path is fluctuating. It is a good idea to invest a lot of your dollars in these emerging markets.
Fortunately, almost everything has an index fund. For ordinary investors, investing in Singapore, Brazil, and other countries on the computer is just like a gift from heaven. Express your gratitude. Then, buy, buy, and buy.

Rule 4: invest yourself (invest in yourself)

Maybe you want to save money for retirement automatically; your employees take money from your account, before tax. If you want to gather your current assets-the money you can use at any time-you also need to automate your savings.
You can sign an automatic savings agreement with your bank and your broker online. Each month, you can get a certain amount of money from your check account to buy an index fund, a low-cost variable annuities (Variable Annuity), or a variety of mutual funds, then I made some money to buy foreign index funds. Like the legendary army's fork weapon, "fire and forget ).

Good luck if you think you can always lead the market. It took my head on wood for decades-yes, for decades-to understand the truth. If you can figure it out in just a few years, your future will be limitless.

Suize, I hope you are listening.