Provided by Taylor McClish
Regardless
of how the markets may perform, consider making the following part of your
investment philosophy:
Diversification. The saying “don’t put all your eggs in one basket” has
real value when it comes to investing. In a bear or bull market, certain asset
classes may perform better than others. If your assets are mostly held in one
kind of investment (say, mostly in mutual funds or mostly in CDs or money
market accounts), you could be hit hard by stock market losses, or alternately,
lose out on potential gains that other kinds of investments may be
experiencing. There is an opportunity cost as well as risk.1
Asset allocation strategies are used in portfolio management. A financial professional can ask you about your goals, tolerance for risk, and assign percentages of your assets to different classes of investments. This diversification is designed to suit your preferred investment style and your objectives.
Asset allocation strategies are used in portfolio management. A financial professional can ask you about your goals, tolerance for risk, and assign percentages of your assets to different classes of investments. This diversification is designed to suit your preferred investment style and your objectives.
Patience. Impatient investors obsess on the day-to-day doings of the
stock market. Have you ever heard of “stock picking” or “market timing”? How
about “day trading”? These are all attempts to exploit short-term fluctuations
in value. These investing methods might seem fun and exciting if you like to
micromanage, but they could add stress and anxiety to your life, and they may
be a poor alternative to a long-range investment strategy built around your
life goals.
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
401(k) and similar investments through payroll deduction or automatic
withdrawal. They are investing on “autopilot” to help themselves build wealth
for retirement and for long-range goals. Investing regularly (and earlier in
life) helps you to take advantage of the power of compounding as well.
If you don’t have a long-range investment strategy, talk to a
qualified financial professional
today.
Taylor McClish may be reached at (503) 239-3060 or Taylor.McClish@cunamutual.com
This material was prepared by MarketingPro, Inc., and does not
necessarily represent the views of the presenting party, nor their affiliates. This
information has been derived from sources believed to be accurate. Please note
- investing involves risk, and past performance is no guarantee of future
results. The publisher is not engaged in rendering legal, accounting or other
professional services. If assistance is needed, the reader is advised to engage
the services of a competent professional. This information should not be
construed as investment, tax or legal advice and may not be relied on for the
purpose of avoiding any Federal tax penalty. This is neither a solicitation nor
recommendation to purchase or sell any investment or insurance product or
service, and should not be relied upon as such. All indices are unmanaged and
are not illustrative of any particular investment.
Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America.
Citations.
1 - forbes.com/sites/brettsteenbarger/2019/05/27/why-diversification-works-in-life-and-markets
[5/27/19]