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U N N E C E S S A R Y R I S K S You do not have to risk your capital to make a decent return on your money. There are many investments that offer a return that beats inflation and better, without unduly jeopardizing your hard-earned money. Treasuries, for example, are the safest possible investment with a decent return and virtually no risk. Blue-chip preferred stocks, common stocks, and mutual funds can also offer high returns with a fairly low level of risk. N O T S TA R T I N G E A R LY Many investors are not cognizant of the power of compounding interest. By starting early with your investment plan, you can invest less, and still come out with double or even quadruple the returns you might have by starting later. By investing as much as possible earlier on, you'll be able to meet your goals and have more cash on hand to spend. In other words, investing early means your money will work harder for you. At the end of the day, sound investing is no accident. Use the investment strategies that do work: a balanced allocation of your portfolio's assets among securities that suit your individual needs, the use of dividend reinvestment programs and other cost-saving strategies, and a well-disciplined, long-haul approach to saving and investment. IG N OR I N G TA X E S Every time you or your mutual fund sells stocks, there is a capital gains tax to pay. Unless you are in a tax-deferred retirement account, taxes will take the lion's share of your profits. It's prudent, therefore, to seek out funds with low turnover (i.e. funds in which shares are bought and sold less frequently). Your portfolio should have a turnover rate of 10 percent or less per year. For more information, or to to consult with one of our top-of-the-line CPAs, call 201.587.9200 or visit us online at www.bergercpafirst.com. V U E N J .C O M 128

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