365 Ways to Get Rich (Part 2)

We shared the first 20 tips from Forbes on how to get rich in a previous post.

This is something that many people want but few know how to do.

Now here are the next 20…

#21
When the bear charges, stand your ground.

#22
For protection from inflation and currency devaluation, buy the “gold you can eat”—farmland.

#23
Know your risk tolerance. Pick an asset allocation that lets you sleep at night, so you won’t panic and sell stocks at the bottom.

#24
Don’t keep too much in cash equivalents—over time, this “safe” investment barely keeps up with inflation.

#25
After setting an asset allocation, rebalance yearly;  it forces you to take profits when stocks have surged and to buy more shares when they’re cheap.

#26
Benjamin Graham: “Adopt simple rules and stick to them.”

#27
Buy Bitcoin as a speculation or political statement, not a hedge.

The Forbes E-book On Bitcoin Secret Money: Living on Bitcoin in the Real World, by Forbes staff writer Kashmir Hill, can be bought in Bitcoin or legal tender.

#28
Be a tax-smart investor. Hold taxable bonds in a 401(k) or IRA. Put individual stocks in taxable accounts so you can sell losers to harvest tax losses.

#29
Pay attention to the IRS’ wash sale rule when harvesting capital losses.

#30
Don’t invest in a hedge fund unless its audited results are reported in compliance with Global Investment Performance Standards.

#31
Build an emergency fund outside your 401(k).

#32
For the biggest tax break when donating collectibles to charity, make sure they’ll be displayed and not sold.

#33
Put alternative investments like real estate (but never collectibles) in your IRA.

#34
Burton Malkiel: “All index funds are not created equal. Some have unconscionably high expenses.”

#35
Keep an eye on—but don’t obsess over—mutual fund fees and expenses.

#36
Even committed indexers should use actively managed funds to buy municipal and high-yield bonds and value stocks.

#37
Yield is nice, but total return is the metric that matters.

#38
Gold is overrated as an inflation hedge—historically, its price moves are unrelated to inflation.

#39
For inflation protection, buy floating-rate corporate bonds.

#40
Don’t let the mood swings of Mr. Market coax you into speculating.

Read the rest of the tips on Forbes.

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