Roth IRA Stock Portfolio: Business Plan Advice

It is very important to develop a business plan or a plan of action before opening a Roth IRA stock portfolio. Some questions you may ask are: Which stocks do I want to invest in? What percentages of each sector should I direct my hard earned monies towards? How often should I re-balance my portfolio? Well, always remember that you are in total control of your stock portfolio. Don't let anyone persuade you to invest in a recent hot stock or a get rich investment scheme. This is your money that your working with and ultimately the success of your portfolio and how wealthy you are during your retirement years are a direct correlation of how many wise and well thought out investment decisions are made over your many years of stock market investing.
That being said, you do not need to be a professional stock broker nor a genius like Warren Buffet to develop an income stream within your Roth IRA stock portfolio. Now of course, that is contrary to what any broker may tell you, but believe me, being confident in your business plan, performing your due diligence for each stock investment, and then following through with ultimate goals is a sure way to a achieve a successful stock portfolio.
You may be saying to yourself, why should I buy stock within a Roth IRA? Well, a Roth IRA is the ultimate retirement tool that allows you to invest in stocks, bonds and mutual funds, while letting them grow and compound dividend payment after glorious dividend payment. Then after you turn 59 1/2 years of age you are allowed to withdraw the entire sum of your investments including gains, tax-free!
Treat your portfolio as if you are running your own business. Would you hire an employee who sleeps on the job? Would you use your profits to invest in an unknown start up company with the hopes of getting rich quick? I strongly advise you to monitor any company that you buy stock from on a weekly basis. Invest in companies that pay you to hold their stock in the form of a monthly or quarterly dividend, then if the stock price goes down their dividend yield will increase. Also, invest in companies which have been around for decades, have a moat of cash on hand, and have a dividend yield higher than 2%, if not 3%. There are plenty of great companies out there which pay a reliable and secure 4%, 5%, 6% and even 7% dividend yield. That's guaranteed free cash!
Constantly reassess what your stock portfolio goals are and also how much risk you are wiling to take. If you make solid, well thought-out purchases then you can sleep better at night. Do your homework! Research how long each company has paid a dividend, listen to their quarterly conference calls so you can hear how well or bad the company is performing directly from the CEO's lips. Take notes and then hold them accountable if they do not meet analysts, but more importantly, your shareholder expectations. Keep excellent records so you can go back and pinpoint where the company may have gone wrong, or made erroneous decisions.
My final comment pertaining to a Roth IRA stock portfolio business plan is to only invest money that you can lose. Now of course, you probably won't lose your money if you make smart investing decisions, but it is so important to not use money that you should be using to pay your bills (for example, college loans, utilities, car note, mortgage, grocery, clothing money, etc.). Don't cut yourself short each month just because you want a few more shares of your favorite winning stock. The stock market is a risky place, but historically has provided some of the best return on investments the world has ever seen.
Please feel free to comment below and share your story of what makes a great stock portfolio business plan. Share your tips with the world so we can all profit. Have a great Friday and continue to reinvest your dividends! Thank you for your time and support.