No matter how long you’ve been investing, there are certain questions you need to ask yourself. This is a great exercise for investors to define their overall investment strategy, refine their investment plan and improve their long-term outlook.
Illumination Wealth recommends you ask yourself the following questions:
There is a lot of competition in the investment market. If you are trying to catch lightning in a bottle with that one magic stock, you will probably find more disappointment than success. The good news is you can use the competition and all the vast amounts of real-time information available to understand market trends and build a successful long-term portfolio.
Many investors will look at the past performance of mutual funds and use that as a basis for where to invest. The truth is that past performance isn’t always a dependable indicator of future performance. Sure, some investments will be safer than others, but there are many other factors that need to be looked at before you choose the investments that are right for you.
The short answer to this is a resounding no. Sure, there are intelligent moves you can make at opportune times. Otherwise, you want to let the markets work for you. It is not a fight and you certainly don’t need to “outsmart” the market to be a successful investor.
Last week on the Illumination Wealth Blog, we talked specifically about the importance of diversification. International investing is not for everyone, but it is a great way to diversify your portfolio into higher growth markets as well as protect against times when the U.S. market might be more highly valued than ones overseas.
No investment portfolio should ever be set in stone. It is a constant battle to keep making adjustments in order to maximize your returns. However, you always want to remember that this is a long-term plan and you don’t want to go overboard with unnecessary changes. Don’t make short-term moves that hinder your long-term growth and never overreact too much to current market conditions.
For this question, the short answer is yes if you are really serious about improving your financial future. You can go it alone and take your chances, or you can partner with an experienced fiduciary financial advisor to help you make sound and objective investment decisions. A skilled investment advisor will be able to look at your entire portfolio, diversify your investments and make smart long-term plans. They will also help you stay more disciplined and focused, thus avoiding greed, panic and rash moves when the market goes through its natural ebbs and flows.
To learn more about what a financial advisor can do for you and your long-term investment portfolio, contact Illumination Wealth today. We’d be happy to sit down with you or chat over the phone to discuss your financial goals and start getting your investment plan in order as you journey down the road to true financial independence.