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…
When the bear charges, stand your ground.
For protection from inflation and currency devaluation, buy the “gold you can eat”—farmland.
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.
Don’t keep too much in cash equivalents—over time, this “safe” investment barely keeps up with inflation.
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.
Benjamin Graham: “Adopt simple rules and stick to them.”
Buy Bitcoin as a speculation or political statement, not a hedge.
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.
Pay attention to the IRS’ wash sale rule when harvesting capital losses.
Don’t invest in a hedge fund unless its audited results are reported in compliance with Global Investment Performance Standards.
Build an emergency fund outside your 401(k).
For the biggest tax break when donating collectibles to charity, make sure they’ll be displayed and not sold.
Put alternative investments like real estate (but never collectibles) in your IRA.
Burton Malkiel: “All index funds are not created equal. Some have unconscionably high expenses.”
Keep an eye on—but don’t obsess over—mutual fund fees and expenses.
Even committed indexers should use actively managed funds to buy municipal and high-yield bonds and value stocks.
Yield is nice, but total return is the metric that matters.
Gold is overrated as an inflation hedge—historically, its price moves are unrelated to inflation.
For inflation protection, buy floating-rate corporate bonds.
Don’t let the mood swings of Mr. Market coax you into speculating.
Read the rest of the tips on Forbes.