When it comes to finances, there are literally thousands of topics that could be discussed. For example, we could choose the subject of market volatility. But as legendary Wall Street financier Bernard Baruch summarized it, “markets go up and down,” so there's really not much to improve upon there.

But of all the subjects open for discussion, I think it's most important to address the change sweeping the investment markets, and the long-term impact it will have on investors and their portfolios. From my vantage point, the runaway bull market and dot.com fever have lulled many investors into practicing investment strategies that are doomed to fail.

Being in the financial arena every day, I can definitively declare that the “inmates have taken over the asylum.” Today, it seems that anyone can become an investment expert. The airwaves are increasingly filled with new investment ideas and strategies. There are even Web sites that allow individuals to post their own stock recommendations, along with analyses of the stocks they love.

However, much of the investment information in circulation today isn't information at all; it's garbage. This is why it is more important than ever to analyze information carefully and know its source. So-called experts may be proselytizing to support stocks and strategies that help their own portfolio or business. By promoting their own holdings they lose their objectivity. Investors must understand that information alone is not power. Knowledge is power.

A revolution in financial services has empowered the individual investor. For the first time in the history of the U.S. financial markets, power has been seized from the small group that runs Wall Street and put in the hands of the investor. Information is literally everywhere. You can execute a trade in nanoseconds. You can trade over extended hours. Some online trading firms even give away “free” trades just to get you to try their services.

Unfortunately, this empowerment is an opportunity for many investors to lose their own money instead of having someone else losing it for them. Realize that even extremely bright, well-paid professionals with Ivy League degrees and complex modeling software rarely beat the market. There is no reason to believe that you will beat the market consistently by day trading.

Today, investment clubs outnumber gardening clubs by a 4-to-1 margin. This is an excellent illustration of the fact that investing has become the No. 1 hobby among many Americans. However, this can pose a real problem. If your tomatoes don't turn out right, that's not much of a problem. But if your retirement portfolio goes bad, the impact could be devastating. Frankly, accumulating a retirement nest egg is far too important to be just a hobby.

This is not to say that the current wave of increased information is bad. The key point to understand is that this additional information should be used to become a smarter investor, not a smarter trader.

So you might be asking, what are some seeds of wisdom? Well, as the saying goes, the more things change, the more things stay the same. Tried and true investment strategies will always work. Here are a few insights to help you realize your investment and retirement goals:

Set Goals
If you don't know where you're going, any road will take you there. It is essential that you set very specific investment goals. For starters, you need to know when you plan to retire and how much you'll need to retire.

Be True To Yourself
Determine first and foremost if you want self-serve, co-serve or full-service. If you're not comfortable doing it alone - and most investors aren't - don't succumb to the alluring advertising of the online trading firms. Your money and your retirement planning are too important to address by trial and error! Find a firm that can work with you any way you wish.

Pay Yourself First
You've heard it a million times. Now it's a million and one. You can't invest what you've already spent. Try to save 15 percent of your income each and every year. Whether it is a company-sponsored retirement plan or an automatic payroll or checking account deduction program with a mutual fund, get the money out of your hands (and checking account) before you spend it on something you don't really need.

Save and Invest Regularly
Investing $100 per month for 12 months is better than investing $1,200 for one month. Why? It's called dollar cost averaging, and over the long term it helps you invest at a lower cost per share of a mutual fund or a stock. Dollar cost averaging, of course, doesn't guarantee you a gain or prevent losses in some markets. It's just a smarter way to invest over the long term.

Minimize Taxes
A penny not paid in taxes is definitely a penny earned. Take full advantage of all tax-advantaged investment opportunities, starting with any company-sponsored retirement plan such as a 401(k) or 403(b). Tax deferral, particularly if combined with pre-tax contributions, is your best friend over the long term.

Allocate Your Assets Properly
Far too much time is spent looking for the “best” mutual funds or the “hot” stocks. Our advice is to “forget about it.” The key to long-term investment performance is to develop a proper asset allocation strategy that is aligned with your goals and objectives and your investment personality. If you're 75 years old and all of your money is in small cap stocks - even if you're making money - your strategy is off.

Invest Smart
If you're using mutual funds as your preferred investment, be smart about the funds you're using. Don't avoid funds solely because they have a sales load. Don't buy funds just because they're “no-load.” Don't buy a fund just because its expenses are low. More often than not, cheap is not the way to select a fund. Buy funds that have been consistent performers - not shooting stars. It's amazing how a great five-year track record can be built with one great year and four bad ones. Our advice: be wary.

Well, I hope my advice for investing has at least stimulated your thinking. As they say in sports, the key to success is mastering the basics. This certainly holds true for investing. Don't let all the newfangled tools, strategies and information get you to stray from the basic blocking and tackling strategies that can make you an investment winner.

Daniel T. Dubois is the president of Western Capital Financial, an ASA national member benefit provider. For more information about Western Capital Financial, contact an ASA- dedicated representative at (877) ASA-7229 or send an e-mail message to asa@westerncapital.com.

RATE THIS ARTICLE What do you think of this article? Your input will help AutoInc. develop additional articles on this subject. Share your thoughts! Your name Your e-mail address

MOST ACCESSED ARTICLES Fuel Injection Service, Not Just Cleaning The Art of Extraction EGR Systems: Operation and Diagnosis Proactive Target Marketing:_Rethinking Your Business Strategy Engine Performance: HO2S Diagnostics MOST E-MAILED ARTICLES Developing Employee Potential How Critical Thinking Can Help Your Business How to Diagnose the Ford Glow Plug What to Look for When Shopping for the Right Shop Management Software Putting a Price Tag on Complaints

AutoInc. Web Site | ASA Web Site | Allstate Acquires Sterling Collision Centers | One Shop, Two Shops, Three Shops, Four... | Equipping Your Shop | Long-Term Investment strategies: Not a Hobby | Guest Editorial | Tech to Tech | Tech Tips | Shop Profile | Net Worth | Stat Corner | Chairman's Message