Where Do I Start?
When it comes to investing your money, how do you know when to get in? Or out? Or even, when to get back in? While we never know when exactly things are going to happen, what we do know is it’s so important to make investment decisions based on a solid strategy and philosophy. In the racing world, if a driver has a bad lap or even a bad race doesn’t mean the team abandons the strategy and starts from scratch. Your financial strategy is no different. Our planning and investment process allows us to be agile and flexible while keeping your goals as our guide. We’ve seen throughout history some of the worst days for the market have been followed by the biggest growth spikes and the advantages of keeping your money invested in the right places can have the power to exponentially grow your wealth over time.
So when considering an investment strategy, what kind of strategy is right for you? While your personalized strategy depends on a number of factors, two basic management styles are actively managed and passively managed. There are pros and cons to both that are heavily dependent on your goals. But understanding these two factors alone can have a big impact on your planning and investment needs.
4 Part Strategy
When advising our clients on getting started with an investment strategy, we break it down into four basic pieces:
Understanding time in the context of your investment strategy is crucial. Are you in your 20’s just starting out and ready to start saving for retirement? Do you have a young family and starting to think about starting college funds for your kids? Are you nearing retirement and looking for solutions to give you financial stability? Or have you already retired and you’re looking to maximize your wealth? Various stages of life call for different needs and understanding what’s doable and feasible with your money and in the timeframe, you’re looking at may help maximize your return.
There is always some amount of risk when investing your money. Risk refers to the potential financial loss associated with an investment decision. In general, as investment risks rise, investors seek higher returns to compensate themselves for taking such risks. So understanding how much to take is part of what makes a financial advisor so crucial to a good investing strategy.
Are you saving for a rainy day? Or a beach house where you’ll spend your retirement? Understanding realistically how much money you’ll need to reach your goals will give you the clarity and confidence to make quality investment decisions. You may have several goals in mind that all take a different strategic approach. That’s okay! Helping you make your money work for you is what we do best.
Here’s where we get creative. There are so many options for investing your money and understanding and using the right tools to get there can be a lot to process. From stocks and bonds to mutual funds and ETF’s, your toolkit for investing will be strategically created with YOU in mind.
Your timeline, the amount of risk you’re comfortable taking, your financial goals will all influence which tools you should use.
This all sounds like a lot, right? That’s where Dave and I come in. We’re experienced financial professionals with extensive experience ready to help you create comprehensive financial plans. Click here to set up a call to learn more about how you can be Financially Fit.
Investing involves risk, including the potential loss of principal. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.