What You Can Control

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#8 Focus your efforts on what you can control.

You cannot make stocks go up, but there are things you can do to improve your returns. Keep trading costs down. Choose low fee (no-load) investments. There are legitimate reasons for high expenses but, if your mutual fund charges more than 1.5% of assets annually, it should produce extraordinary results.

Put as much money as possible---max out--- in “tax deferred vehicles” (40l(k)s, 403b and 527 plans and IRA’s). Grab every matching dollar. Utilize buy and hold investments in non-deferred accounts. These strategies can add several points to your return.

Over a long period of investing, the compounded impact of those savings adds up dramatically. With these plans, the interest you earn goes right back in the account. You don’t have to pay tax on it every year. You increase both your investment and your return.

Once you retire, you will be taxed on your money as you withdraw it unless you have a Roth IRA and meet the conditions of tax-free withdrawal.