7 Investment Management Rules for Success

By Bill Taber

Does the process of building for the future feel more like a guessing game than a strategy? It’s easy to feel overwhelmed by the constant market noise and the pressure of knowing that one wrong move could jeopardize years of hard work. Whether you’re managing a 401(k), stocks, or real estate, that underlying fear of making a costly mistake can often lead to “analysis paralysis.”

While financial jargon usually makes things more confusing than they need to be, you don't need a PhD in finance to succeed; you need a framework. 

These seven investment management rules are designed to cut through the complexity and replace that uncertainty with a clear, disciplined path toward your long-term goals.

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 an emergency fund of 6-8 months of easily accessible liquid money available. 

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

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.  

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 because some are better for the long term while others are better for shorter periods. 

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.

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. 

5. Educate Yourself

Investment management isn’t a sprint, it’s a marathon. Most people don’t get rich overnight, so you don’t have to know everything about all things concerning your investments. However, it’s important to stay, as Warren Buffett suggests, within your “circle of competence.” Invest in opportunities that either you or a trusted fiduciary investment advisor understands. Over time and by focusing on reading, your knowledge will gradually and steadily increase.

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, if not thousands, of dollars. Famed investor Peter Lynch once said that more money has been lost waiting for market corrections to begin than has ever been lost in the corrections themselves. Once you educate yourself on investment management, get started. The power of compounded money will begin to kick in and your future self will thank you.

7. Diversify Your Investment Management Strategy

You’ve likely heard the classic advice about not putting all your eggs in one basket. In the world of investing, that principle is your best defense against uncertainty. Because markets are never a guarantee, spreading your wealth across various sectors and asset classes helps cushion the blow if one specific industry or company faces a downturn.

Successful investment management is a game of strategy. By making calculated decisions over the long term, you can significantly increase your potential for growth while managing your risk. While education is key, navigating these complexities is often more effective with a fiduciary professional by your side. At TABER Asset Management, our team can help you tailor a strategy that aligns perfectly with your unique financial goals.

Are you ready to refine your approach and take the next step in your investment journey? We’re here to help. Get started today by scheduling a 15-minute intro phone call online or reaching out to us at 515-557-1860 or invest@taberasset.com. 

About Bill

Bill Taber is the President and Founder of TABER Asset Management located in Des Moines, IA, and Alexandra, VA. With over four decades of experience, he helps families from all across America grow their wealth, income, and preserve their financial capital. He is a BBA graduate of the University of Iowa, the E-Myth Worldwide Mastery Business Development Program, and has over 40 years of industry experience with TABER Asset Management, E.F. Hutton & Co., and the Principal Financial Group. He is Series 65 registered. Bill operates with a stewardship mentality inspired by helping his own father achieve his dream retirement. Outside the office, Bill enjoys giving back to his community and practicing yoga, pilates, and meditation.