Key Investing Principles for Any Investor

Author bio: Ksenia Yudina is the Founder and CEO of UNest, the first app to offer parents a flexible way to save for their kids’ future. Ksenia is an entrepreneur and financial expert with over a decade of experience in the financial industry.

As a wealth manager, she helped affluent parents access smarter saving and investment options. She founded UNest to extend the same financial acumen to parents across all income levels and backgrounds. To date, UNest has helped tens of thousands of parents save millions of dollars for their kids’ future.

April is Financial Literacy Month, so what better time to think about saving for the future? And with so many parents struggling due to the pandemic, it’s never been more clear how vital financial literacy is for young families. As we recover, it is important to consider protecting your family for an uncertain future and to set your children up for success.

One of the best ways to save for your children’s future is to open a UTMA or custodial account. UTMAs are a great option for the majority of families due to the flexibility they offer. You can use the funds for any important life stage that your kids go through. That can include education, their first car or a wedding! Plus, they offer tax advantages as well.

Whether you’re opening an investment account to help build a better future for your kids or to fund your retirement, it’s important to always keep in mind the basic principles.

No bear or bull market lasts forever. The fundamental concept of buying low and selling high is as true today as it has ever been.  Historically, when there are the most significant drops in the market due to fear of a pullback, this is also when savvy investors can make the most money.

Plus, studies have shown that the ten best days in the market typically occur on the heels of the worst.

Incorporate Investment Best Practices into Your Plan of Action

Dollar-Cost Averaging

Dollar-cost averaging is a strategy in which an investor places a fixed dollar amount into a given investment regularly. The investment generally takes place each month regardless of what is occurring in the financial markets.

It is vital to continue investing even during dips and periods of uncertainty; otherwise, dollar-cost averaging won't work for you.

Furthermore, during market declines, you should consider increasing your monthly allocation. Think of market dips as an opportunity to buy stocks on sale. If you have discretionary cash available, you should consider doing so as well.


Diversification is the process of combining a variety of assets to reduce your overall risk or exposure in a portfolio. Diversification is important because it lowers the volatility of a portfolio and mitigates risk. This is because not all asset classes, industries or stocks move in tandem.

Holding a variety of non-correlated assets significantly helps to reduce risk. When one stock goes down, it’s not a problem because you own a basket of stocks that may be going in the opposite direction.

With this strategy, assets will rise and fall at different times, smoothing out the returns of the portfolio as a whole.

Age-Based Portfolios

Agebased portfolios reallocate assets based upon your child's age. That means, when your child is younger, your portfolio may include more aggressive investments with a higher potential for growth. As the child becomes older, the portfolio becomes more conservative.

This is a smart strategy because it provides greater upside while protecting the funds as the account approaches the age of maturity.

Families no longer have to navigate this difficult terrain alone. Consider opening an account with UNest, which is a simple, cost-effective solution helping parents reimagine how they save and invest for their children’s future. Its unique gifting feature allows friends and family to seamlessly contribute to a child’s fund.


Establishing good investing habits and building a diversified portfolio of stock funds can help you save for college and other financial goals. Practice the basics before you chase the latest stock picks for individual stocks that can be too aggressive for newer investors.

Josh founded Money Buffalo in 2015 to help people get out of debt and make smart financial decisions. He is currently a full-time personal finance writer with work featured in Forbes Advisor, Fox Business, and Credible.