Much of what impacts your investment decisions is beyond your control. That said, you do have a big say on how much you spend on investing. By tending to the costs of your investment decisions, you can control how much you need to spend when you invest … which leaves more of what you’d like to keep for yourself.
Despite positive annual market returns during most of the decade, investors had to process ever-present uncertainty arising from a host of events. These included an unprecedented US credit rating downgrade, sovereign debt problems in Europe, negative interest rates, flattening yield curves, the Brexit vote, the 2016 US presidential election, recessions in Europe and Japan, slowing growth in China, trade wars, and geopolitical turmoil, to name a few. You may be wondering whether to stick with your investment plan vs making some adjustments.
From books to blogs, from media mavens to marketeers, from pundits to pros … there’s never a lack of talking heads telling you how to make the most of your money. Why hire an independent advisor to assist with your financial interests? Why not just tap into all the free advice already available?
The SECURE Act – Setting Every Community Up for Retirement Enhancement Act – provides a mixed bag of incentives and obligations for retirement savers and service providers alike. Its intent is to make it easier for families to save more for retirement.
Downplay the prediction game! Rather than basing investment decisions on predictions of which way debt or equity markets are headed, a wiser strategy may be to hold a range of investments that focus on systematic and robust drivers of potential returns.
Whenever investors are spooked by turbulent times, dollars tend to flow out of the stock market, and into “safe harbors” investments such as bonds, bond funds, CDs, money markets, or even cash. As part of your overall investment strategy, it usually makes sense to allocate some of your wealth to safe harbors holdings. But too much “safety” can actually put your wealth at risk.