No, it’s not going to be a discussion of what to invest in, how to diversify your investments, or how to make the biggest returns. Let’s talk about “why” you are investing. In my experiences as an advisor for some 30 years, I have often heard the same questions when it came to portfolios and returns; “Is this a good return?”, “What should I be investing in?”, and “How much should I invest in stocks?” These are all great questions, but the answer begins with “Why are you investing?”. Comedian Michael Jr has a great quote that he uses to point out how to live but it also has a great application when it comes to your investments. “When you know your why, your what has more impact because you are moving in or toward your purpose.” So, let’s start the discussion with “What are you saving and investing for?” The answer to that question starts with your financial/retirement plan.
What are your goals?
- Retirement?
- College for kids or grandkids?
- Anniversary celebrations and trips?
- Home improvement?
- Vacation property?
- Medical expenses?
- Parent or Long-Term Care?
- Other
- What are the time frames when funds will be needed?
- What assets and discretionary income do you have to help you reach those goals?
- What unforeseen events do you need to plan for?
- Do you have an emergency fund set aside?
- Do you have any potential inheritances in the near future?
Reviewing your investments and deciding on what and how to invest is best directed by what the funds will be used for. Are you on track to reach your goals? If your goals are projected to be satisfied by your current investment mix and returns, why take on additional risk to increase the results? Keep in mind, you only hear about others investment returns when they have a great year, they don’t talk about the losses. After all, what is more important? Bragging rights with friends and neighbors over portfolio returns or being on-track to meet your dreams and desires?
Not sure where to start or have a plan you haven’t re-visited in a few years? Give me call to discuss or setup a time to talk via my scheduling site https://go.oncehub.com/ChuckVercellone.