April is National Financial Literacy Month. The month is dedicated to raising public awareness of the importance of financial literacy and maintaining smart money management habits. No matter where you are in life, the best time to start investing is right now. You are never too young or too old to start investing, no matter how much you have.
People who start investing early and consistently can accumulate more assets. In addition, investing with a longer time frame in mind allows an investor to withstand volatile markets and stay invested. Here are three investment strategies to consider.
- Match Investments To Your Time Horizon: It’s important to know what you are saving for and how much time you have until you may need the money. This is all about risk management. For a shorter timeframe, consider a conservative approach with less risk. If you have a long-term goal, a more growth-oriented approach to investing might be better. These investments come with increased risk, but the longer term can mitigate its impact.
- Diversify Your Investments: It’s crucial to have a diversified portfolio. This means owning many types of investments and as your accounts grow, continuing to add additional investments. This helps manage investment risk, while potentially offering greater returns instead of having a single type of investment.
- Rebalance Your Portfolio: Rebalancing your portfolio every now and again, at least yearly, is a prudent investing strategy. Time can change the degree of risk as diverse investments perform differently based on economic cycles. Rebalancing your portfolio back to your original risk tolerance and time horizon goals may prevent you from floating into a higher risk portfolio.
These are just a few ways to get started on pursuing your financial goals. If you have any questions, feel free to reach out to us and we can help you get started.
Information in this material is for general information only and not intended as investment, tax or legal advice. Please consult the appropriate professionals for specific information regarding your individual situation prior to making any financial decision.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.
Email me your questions at financial.freedom@lpl.com or call 541-574-6464. You can also post you question on our Facebook page: https://www.facebook.com/FinancialFreedomWealthManagementGroup
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