There’s no one strategy that will always be successful when it comes to investing. Whether there are changes happening to your personal financial situation or you have a shifting risk tolerance, or there are economic or tax implications, having more than one option is a must when it comes to your investment plan.
Stick to the Plan
Perhaps the most significant step you can take toward achieving your long-term financial goals is to set them in the first place. Work with your Advisor to paint a picture of your future, and then establish a simple, easy-to follow plan for making it a reality. It’s not difficult, but it does take discipline. Monitoring your progress over time is a great way to stay focused on what matters.
Put Financial Noise in Perspective
You may hear suggestions to “ignore” or “tune out” anxiety-inducing market headlines. As humans with natural biases, this is all but impossible. It’s not about ignoring short-term noise. It’s about recognizing it for what it is and seeing that the long-term picture is more positive.
Regular Portfolio Rebalancing
At least once a year, connect with your advisor to rebalance your portfolio. That means selling some of the “winners” and buying more of the “losers.” This practice serves two functions: Your portfolio maintains the original asset allocation you established at the beginningYou force yourself to sell investments that made money (selling high) and buy investments that lost money (buying low).
All-In One Portfolio Solution
Instead of building a portfolio from various individual funds, consider investing in a ready-made balanced fund, where you can get a fully diversified solution with just one decision. And you never need to worry about rebalancing. The investment manager takes care of it for you through the daily operations of the fund.
Work with an Advisor
Households that worked with an advisor for at least 15 years accumulated almost four times more financial assets than non-advised households. Contact an Advisor today.*
*The Gamma Factor and the Value of Financial Advice, Centre interuniversitaire de recherche en analyse des organisations (CIRANO), 2016.