My #1 investment idea for 2014

As the old saying goes, you’ve got to be in it, to win it. By all accounts 2014 looks to be a winner’s year. RBS Morgan’s is optimistic about the near future for equities, and perhaps you should be too.

As a new year comes into focus, it’s the perfect time to reassess your position and re-evaluate your holdings. You’ll have winners and losers but it’s important to understand that past performance does not guarantee future gains.

Robert Arnott believes, “In investing, what is profitable is rarely comfortable.” Each year we’ll have to make uncomfortable, risky decisions which we hope will pay dividends for years to come. You’re never going to get rich keeping your money in a savings account – especially when interest rates are likely to drop below 2.5%! How many millionaires do you know who have become wealthy by investing in savings accounts?

Risk-averse investors have long avoided the stock market, but if you want to reach your financial freedom and you’re willing to learn, it’s too risky not to invest. An investment in knowledge pays the best dividends.

So in 2014 resolve to take strides towards your financial goals. Begin thinking today about building up a portfolio of stocks. Start paper trading (where you practice buying and selling without using your hard-earned cash) and put money aside, even if it’s a small amount — $1 invested in the Australian stock market in January 1900 would be worth $280,000 today!

Foolish takeaway

If I were to start building my portfolio today, the first investments on my list would be ‘core’ stocks, meaning the bigger and more reliable companies on offer. Telstra (ASX: TLS), ANZ (ASX: ANZ) and Coca-Cola Amatil (ASX: CCL) are three big Australian companies that I believe hold great long-term potential for investors. In addition, they pay outstanding dividends.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

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