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Goals become Accomplishments with Discipline

A few highlights from an article by Kathy Kristof on CBS News

Articles by Mary

By Mary Biggins
  |  Published: July 14, 2011

This article by Kathy Kristof is a few month old, but we love it. We wanted to highlight several parts of the article.

If you want to stay rich, you’ve got to practice restraint when you’re dealing with Wall Street.

“The only way you’re going to earn [a lot] is if you do nothing, year-after-year, even when you read about the Ten Top Stocks You Should Buy Now! I had so much trouble deciding which story to link to that I actually linked each word to a different one. (Please don’t buy any of these stocks.)…”

“How do you do that? You buy a portfolio of index funds that match your age and goals.”

“The hard part is leaving that portfolio alone. When times are good and you’re tempted to make them better by buying the “hot” stock du jour, you need to leave your index funds alone. When times are bad, and you’re convinced that they’re only going to get worse, so you should sell your stocks — like many people did when stocks dropped into the 6,000 range — you need to leave your portfolio alone. Once a year, when people will tell you to “rebalance,” you need to rebalance by adding money to the sectors of the market that did the worst the year before. Yes. You buy what did badly. That’s called buying low. Some day when you want to live on your riches a long time from now, you will sell high. But not today.”

“Today, you’re going to build up a portfolio and sit on it. If you do nothing for a really, really long time, you’ll have a portfolio that earns more than you do. That’s the power of compounding, which only works when you are disciplined enough to do nothing. Relentlessly.”

Check out the full article here and keep exercising that self-restraint!

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