7 Investment Management Rules for Success

By Net Worth Advisory Group

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There are endless investment strategy options, from stocks and bonds to retirement accounts and real estate, all competing for your attention. So what actually makes a successful investment strategy? Not chasing trends or trying to predict the market. It’s following a few clear principles that help you make steady, long-term decisions.

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That’s why I compiled these seven investment management rules. These simple, practical guidelines can help cut through the noise, keep you focused, and support smarter decisions over the long run.

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1. Prepare Your Finances

Before you begin investment management, you want to feel confident your financial foundation is solid. This includes paying off high-interest debt and having a small emergency fund of easily accessible liquid money available. 

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If you begin investing before you’re prepared, it can backfire down the road.

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2. Know Your Purpose

Once you’re financially prepared to invest, it’s time to set a purpose. Your reason for investing could be to save for retirement, put aside money for college tuition, or save for a down payment on a home. Knowing your purpose makes the journey more meaningful.  

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Along with identifying your objective, you want to determine when you’ll need your money back. This guides you in deciding which type of investment to make since some are better for the long term while others are better for shorter periods. 

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3. Determine Your Investment Amount

Now it’s time to determine how much you will invest. You don’t need to make substantial investments, but get in the habit of making contributions regularly. It can be as little as $100 a month going up to thousands of dollars per month depending on what you can afford. We generally recommend saving at least 10%- 15% of your income or working up to that as a goal.

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4. Automate Investing

If you have a 401(k) through your employer, you’re investing! It’s advantageous that your investments are likely automatic, because when you don’t have to make those payments manually, you are more likely to be consistent. If the money comes out of your paycheck or your checking account without you doing a thing, you won’t have the chance to decide against making your investment. You can also set up recurring contributions to IRA’s or brokerage accounts, to help automate all your investment contributions.

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5. Educate Yourself

Think of investment management as a marathon, not a sprint. Most people don’t get rich overnight, so you don’t have to make spur-of-the-moment decisions about your investments. Instead, take the time to educate yourself about the choices you’re making. Also, don’t rely on someone else to tell you everything about investing. Even with a financial advisor giving you advice, you should have a general idea of how investment management works. 

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6. Start Early

Since investing is a marathon, time is on your side. The longer you allow your money to sit in an investment account, the more money you’ll usually make. Don’t delay investing once you’re financially prepared. Each year you wait costs you hundreds and thousands of dollars. The interest you’re losing out on is essentially free money! Once you educate yourself on investment management, get started. Your future self will thank you.

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7. Why Diversification Still Matters in Investment Management

You’ve probably heard the saying “Don’t put all your eggs in one basket.” In investment management, it’s a simple way to think about reducing risk. Because markets can be unpredictable, spreading your money across different types of investments and industries helps limit the impact of market swings. That way, if one company struggles or a sector hits a rough patch, your entire portfolio doesn’t take the same hit.

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The truth is, investing is a long-term strategy that works best with consistency and discipline. With the right approach, long-term, calculated decisions can make a meaningful difference in your results. And while it’s always smart to learn the basics, working with a financial advisor can help you build an investment plan that fits your goals, timeline, and comfort level.

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Are you ready to strengthen your investment management strategy? Our team at Net Worth Advisory Group would love to help. Call us at 801-566-6639 or schedule a complimentary, no-obligation consultation to see if we are a good fit to help you pursue your goals.

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About Net Worth Advisory Group

Founded in 2003, Net Worth Advisory Group is an independent, fee-only, CERTIFIED FINANCIAL PLANNER® and investment advisory firm located in Salt Lake City, Utah. We specialize in helping people transition from the workplace into retirement and ensuring that those who are already retired will not outlive their nest egg. Our top priority is to have clients experience a greater sense of ease with diligent, personalized wealth care and the implementation of customized financial plans and ongoing personalized asset management. We equip all clients with a comprehensive financial plan, meeting every six months to update as needed and review investment performance. Our team is passionate about providing comprehensive financial planning with the fee-only model, and we love feeling like we’re making a difference in our clients’ financial lives.

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As a NAPFA-registered fee-only advisory firm, our recommendations are untainted by a hidden agenda to sell financial products paying large commissions. Unlike our competitors at brokerage firms, insurance companies, and banks, we are compensated solely by our clients, so we are financially motivated to provide objective advice that is always in our clients’ best interests. Anyone can call himself or herself a financial planner, but only an advisor with the CERTIFIED FINANCIAL PLANNER®, CFP® designation has met the education, examination, experience, and ethical requirements mandated by the CFP® board. According to the CFP Board, there are 97,000+ CFP® professionals in 2023, representing about 1 in 3 financial advisors in the U.S. Net Worth advisors are also members of NAPFA, which only has about 4,600 advisors, and are either CFP® professionals or CFP® professionals in training.

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Net Worth Advisory Group’s mission is to significantly improve the lives of our clients by delivering exemplary financial planning and wealth management advice that enables them to live the lives they have imagined.

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