4 Golden Rules of Investing

Whether you're new to investing or a market veteran, these time-tested tips can help you build your fortune. Rule Number 1: Diversify. Since some investments zig when others zag, divvy your money across several investment categories, from stocks to bonds to real estate. Also diversify within categories. Diversification spreads risk and guards against a catastrophic decline in any one investment. Rule Number 2: Rebalance. Review your portfolio yearly to make sure your mix of investments hasn't strayed from your original goals. If it has, sell investments that have performed well and use the proceeds to invest in underperformers to regain balance.