Stock market investing tips are good for any season. But now that spring has
sprung, and with the warmer weather and looming tax deadline it good
investment advice to take some time and roll up your sleeves sooner rather than
later. Any investing tips that advocate you throw out your entire portfolio
arent wise, and arent practical. Spring cleaning doesn't necessarily mean
cleaning house. However, it is a good idea for every investor to at least take
that nest egg down from the shelf and give it a good once-over with a dust rag.
The stock market is a crazy place and even buy-and-hold investors need to assess
their holdings regularly to ensure they are protecting their money and
maximizing their returns. So allow me to suggest 7 simple spring cleaning tips
to spruce up your portfolio in 2011: 1. Buy Apple I recently attempted to
research an article proving why Apple (NASDAQ: AAPL ) is a bad investment. I
never wrote that article, because frankly there is zero logical basis for such a
story. Consider this: When you look at the 16 analyst ratings on the stock since
Jan. 1 you find an average price target of $429 and a median price target of
$420. That's 16%-18% upside from current pricing, with every single target
projecting gains and every single firm rating Apple as a buy or better. No
wonder 71% of ownership in Apple is institutional – because if you want to
beat the broader market, AAPL stock is darn close to a lock. You should follow
the "smart money" on this one, and beat the market with Apple. 2. Check your
ETF & fund fees Though easily overlooked, the fees or expense ratio of your
mutual funds and ETFs can really eat into your profits over the long haul.
Consider this case study: Investor A puts $1,000 a year in a fund with a 1%
expense ratio, which returns 10% annually. Investor B puts $1,000 each year in a
fund with 0.5% expenses, which also returns 10% annually. At the end of 20
years, Investor A has about $51,100 and Investor B has about $54,100 after
adding compound interest and subtracting fees. That's $3,000 or about 5% total
difference just based on a lower fee! If you have the ability to get a similar
flavor and performance in a lower-fee fund, you should take it. It will save you
money over the long haul.
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