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9 Steps to Build Wealth Advice

Written by Success TV

Save, invest, retire wealthy. Here are nine easy steps to to turn investing fears into wealth building.

Wealth depends more on discipline than it does on luck, says financial counselor Eric Tyson. 

Here are some tips on building wealth from Tyson, author of Investing For Dummies and Mutual Funds for Dummies. 

 
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1. Saving is a prerequisite to investing. "Too many people think, 'I have so little to invest, why bother?'

2. Rewards take risk. If you're the nervous type, Tyson suggests "balanced mutual funds that combine stocks and bonds."

3. Be realistic. Don't expect growth of 20 percent or more from the will help you save and spend wisely.)
4. Diversify investments.  Don't be overly invested in one industry, country or instrument.
5. Retirement accounts are great ways to grow your investments without paying taxes until you withdraw.
 
 
1. Saving is a prerequisite to investing. "Too many people think, 'I have so little to invest, why bother?'"
 
 
2. Rewards take risk. If you're the nervous type, Tyson suggests "balanced mutual funds that combine stocks and bonds."
 
 
3. Be realistic. Don't expect growth of 20 percent or more from the stock market. Over the long term, count on single digit growth a year.
 
 
4. Go for the long haul. "Plan on holding [investments] for a minimum of five years, and preferably a decade or longer."
 
 
5. Spread it around. "Hold a variety of investments that don't move in tandem in different market environments," Tyson says.
 
 
6. Allocate your assets. When planning for long-term goals, take your age and put that percentage into safe investments.
 
 
7. Do your homework. "Educate yourself first...especially if you plan on hiring someone to help you," Tyson advises.
 
 
8. Minimize fees. The more commissions and management fees you pay, the smaller your return.
 
 
9. Don't forget Uncle Sam. Consider tax-efficient mutual funds and take advantage of tax-deductible retirement accounts.

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