10 Investment Resolutions for 2012 and Beyond

While many of us already embrace some of these rules, here is a reminder of what is essential for long-term financial and investment success.

1. Do not confuse entertainment with advice. Many of the financial experts you watch on television are in the entertainment business, and more importantly, they do not understand your personal financial goals and needs.

2. Do not chase a star money manager. Let capitalism be your guide and participate in the market, not in last year's superstar.

3. Be cautious of acting on an opinion.

4. Keep a long-term outlook and consider your investment horizon. Beware trading in and out of the market.

5. Continue to save and invest, and adhere to your long-range plan. It is time in the market-not timing the market-that matters.

6. Rebalance your assets regularly.

7. Diversification is your ally. Avoid investing in a few hot stocks or asset classes.

8. Be prudent and don't take on more risk than is appropriate for your situation.

9. Manage your emotions by learning about your own biases and cognitive errors.

10. Manage your investment costs and look for opportunities to invest in tax efficient investments when possible.

Markets can-at times-be highly volatile, but they have a history of being very efficient. Also, it can be very challenging to maintain your investment plan when there is so much economic uncertainty. That's why managing your emotions can be as important as developing a long-term savings, spending and investment plan. This year, challenge yourself to one or two things that will help you achieve greater financial success and peace.