Your financial plan is part of the larger economy. So, it’s understandable if headlines from CNBC, Bloomberg and Fox Business are keeping you up at night about whether or not you’re on track to reach your goals.
That’s why you should get a second opinion from your financial professional. Together, you can discuss how market volatility and inflation are impacting your portfolio and explore any changes you may want to make.
Regardless of how the markets may perform, consider making diversification, patience and consistency a part of your investment philosophy (read more about this below).
Don’t just react.
Review your strategy with your financial professional.
As a member of Arsenal Credit Union you have access to David Weis, a knowledgeable Financial Advisor available through broker-dealer CUSO Financial Services, LP (CFS)*.
Conquer your retirement goals with a no-cost, no-obligation appointment today! If you have questions, please call David at 314.919.1058, email him or visit his website.
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Diversification
The saying “don’t put all your eggs in one basket” has some application to investing. Over time, certain asset classes may perform better than others. If your assets are mostly held in one kind of investment, you could find yourself under a bit of pressure if that asset class experiences some volatility.
Keep in mind that diversification is an approach to help manage investment risk. It doesn’t eliminate the risk of loss if an investment sees a decline in price.
Asset allocation strategies also are used in portfolio management. When financial professionals ask you questions about your goals, time horizon, and tolerance for risk, they’re getting a better idea about what asset classes may be appropriate for your situation. But like diversification, asset allocation is an approach to help manage investment risk. It does not eliminate the risk of loss if an investment sees a decline in price.
Patience
Impatient investors can get too focused on the day-to-day doings of the financial markets. They can be looking for short-term opportunities rather than longer-term potential. A patient investor understands that markets fluctuate, and has built a portfolio based on their time horizon, risk tolerance, and goals. A short-term focus may add stress and anxiety to your life, and could lead to frustration with the investing process.
Consistency
Most people invest a little at a time, within their budget, and with regularity. They invest $50 or $100 or more per month in their retirement account or similar investments. They’re investing on “autopilot” to help themselves attempt to build wealth over time.
Consistent investing does not protect against a loss in a declining market or guarantee a profit in a rising market. Consistent investing, sometimes referred to as dollar-cost averaging, is the process of investing a fixed amount of money in an investment vehicle at regular intervals, usually monthly, for an extended period of time regardless of price.
Investors should evaluate their financial ability to continue making purchases through periods of declining and rising prices. The return and principal value of stock prices will fluctuate as market conditions change. Shares, when sold, may be worth more or less than their original cost.
*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA / SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.
