With the tech sector of the market on fire, remember, don't get caught up chasing investment returns. As the saying goes, buy low and sell high, right? Then, why do so many investors look at past performance and pick their investments based on the 1, 3 and 5 - year top performers? What has done great, has done great and many times, WILL NOT continue at this pace indefinitely. In fact, many times, the best performer one year, drops to one of the lowest performers the following year and vice versa.
The best way to create an investment plan is to follow a strict asset allocation model and stick to it, rebalancing the mix, at least on an annual basis. This takes all of the emotion out of investing. In fact, this concept applies the idea of selling high and buying low. For more tips and strategies, check out our upcoming FRS Retirement Workshops at www.FRSWorkShop.com.