The First Point – Look beyond the Headlines
Daily market news and commentary can challenge your investment discipline. Some messages stir anxiety about the future, while others tempt you to chase the latest investment fad. When headlines unsettle you, consider the source and maintain a long‑term perspective.
- News and financial commentary can influence people’s view of investing. Without a strong investment philosophy to guide them, they also may follow the advice of friends, neighbors, or family, especially if the “insight” promises a fast, easy return.
- But growing wealth has no shortcuts. Success requires a solid investment approach, a long-term perspective, and discipline to stay the course.
The Second Point – Focus on What You Can Control
Avoid reactive investing:
- Create an investment plan to fit your needs and risk tolerance.
- Structure a portfolio along the dimensions of expected returns.
- Diversify globally.
- Manage expenses, turnover, and taxes.
- Stay disciplined through market dips and swings.
A financial advisor can offer expertise and guidance to help you focus on actions that add value. This can lead to a better investment experience.
- To have a better investment experience, people should focus on the things they can control.
It starts with an advisor creating an investment plan based on market principles, informed by financial science, and tailored to a client’s specific needs and goals. Along the way, an advisor can help clients focus on actions that add investment value, such as managing expenses and portfolio turnover while maintaining broad diversification.
Equally important, an advisor can provide knowledge and encouragement to help investors stay disciplined through various market conditions.
Overall, the two key points to remember are:
- Look beyond the headlines and
- Focus on what you control
This concludes the final video of the Pursuing a Better Investment Experience series. To learn more, check out our other videos!
Diversification does not eliminate the risk of market loss. There is no guarantee investment strategies will be successful. For illustrative purposes only.
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