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Markets & Strategies

4 Steps for Successful Investing

The issues impacting the economy today may seem especially challenging. That’s why you should consider these four cornerstones of successful investing.

March 11, 2019

Learn about the steps in the animated graphic below.

4 steps for successful investing intro
Image for step 1: Start with a plan
image for step 2: diversify your portfolio
image for step 3: globalize your portfolio
image for step 4: keep aligned to your plan
1 2 3 4 5

4 Steps for Successful Investing

The issues and uncertainties investors face today may seem more challenging than those in the past. But basic, sound principles of successful investing still hold true.

Step 1: Start With a Plan

Build a flexible and durable plan that identifies your goals, such as creating a rainy-day fund, paying for a child’s college tuition, or financing a comfortable retirement. A financial advisor can help you identify your goals.

Step 2: Diversify Your Portfolio

Each of your financial goals may require different assets to meet certain timelines and other needs. A diversified portfolio may help minimize the impacts of volatility.

Step 3: Globalize Your Portfolio

Many investors gravitate toward easily recognizable U.S. companies. But we encourage investors to also focus on the long-term positive outlook for global economic growth.

Step 4: Keep Aligned to Your Plan

Stay on track by setting up regular maintenance of your plan. Often, this will involve rebalancing your portfolio in an effort to preserve your gains, take out risks beyond what you can tolerate and sustain the potential benefits of diversification.

Additional Resources

For more, see the Wells Fargo Investment Institute report, “Four Steps of Successful Investing.”

Dollar cost averaging can help take the guesswork out of when to invest. Learn more.

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This information is provided for educational and illustrative purposes only.

Diversification and dollar cost averaging are investment methods used to help manage risk. They do not guarantee investment returns or eliminate risk of loss in a declining market.