Number one is to have clear ⁽³⁾. Decide how many years you will invest for, and what your needs will be in the future.

Number two is to understand the ⁽⁴⁾ of possibilities. You'll want a diversified portfolio: one with a mix of stocks, mutual funds, ⁽⁵⁾, and cash. It's a jungle out there. Each of these products has different risks associated with them and also different potential ⁽⁶⁾. Understand them before you buy, so there won't be any big surprises later.

Finally, number three is to have realistic expectations. As our friend Leonardo da Vinci said in the year 1500: "He who wishes to be rich in a day will be hanged in a year." Over the past ⁽⁷⁾ years, New York stocks have ⁽⁸⁾ 30% annual returns, but don't count on this continuing. While it's true that since the year 1900, stocks have averaged an 11% annual return, it's a roller-coaster ride with many minus years as well, so you have to stay in for the long ⁽⁹⁾--you have to weather the storm--and not be too greedy.

Well, let's get started and Happy ⁽¹⁰⁾! For FNN, this is George Boros reporting.

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