If Bill Gates hadn't known where he wanted to go, he might
have ended up somewhere else. The same goes for your portfolio. If
you're saving for a goal that's five, 10 or 20 years away,
your reactions to the market's fluctuations won't be the
same as if you were focused on speculation and short-term gains. If
high-priced stocks have you spooked, consider making small
purchases on a consistent schedule. You could be in a better
position to take advantage of the market's fluctuations without
a lot of headaches.
Also avoid the all-too-common mistake of ignoring your IRAs.
Many investors pay too little attention to these beautiful
accounts. Some people scatter them about, earning a meager interest
rate because the bank or brokerage firm had an offer that was too
good to pass up at the time. That toaster you got is probably
obsolete, but so might be the IRA that came with it. Consider
consolidating these accounts and making them a vital part of your
financial program.