The Ideas for Your Article in this section focus on investing. If you would like to use one of these articles in your news and announcements section, simply let us know the article number (in parentheses after the title). Don’t use one of our newsletters? Find out more here.

Five Tips to Successful Investing (#1019-1582)

The following are five fundamental tips for investing successfully:

1. Determine your goals. What are your dreams? What are the dollars they will cost? When are the deadlines?

2. Determine your strategic asset allocation. You must decide how much of your portfolio should be in cash, bonds, large company stocks, small company stocks, and international equities.

3. Take taxes into account. In general, hold interest-paying investments in tax-advantaged accounts like 401(k)s, IRAs, and annuities. When possible, hold investments in taxable accounts for 12 months to take advantage of the lower capital gains rate

4. Decide on the appropriate investments. Many alternatives exist, so take time to carefully select investments you’ll be comfortable owning for the long term.

5. Monitor and rebalance. Monitor both performance and allocation for your goals and changing needs. Annually rebalance your portfolio to maintain your allocation.

Finally, invest regularly, ignore the short-term fluctuations, and stick to your investment plan. Please call if you would like help investing successfully.

Keep Your Eye on the Goal (#1019-1583)

Like an athlete, investors must keep their goals in mind, whether that goal is a long-term retirement; sending children or grandchildren to college; or saving for a mortgage. Investors shouldn’t allow changes in the economic environment, the newest hot sector, or any other distractions to get in the way of their financial dreams. Always remember it is important to build endurance for market volatility. Be in shape for the investment obstacle course. Some helpful tips include:

  • Don’t move the finish line: Resist the temptation to dramatically move your assets around when the markets are volatile.
  • Time is on your side: Investing is not a sprint, unless you are a market timer. Don’t be impulsive with your decisions.
  • Don’t quit: There could be significant penalties for staying on the sidelines. Don’t stay out, stay in.
  • Remain flexible: Prepare for every part of the investment obstacle course.
  • Discipline: A little bit of discipline on a regular basis goes a long way.
  • Consult your financial advisor: Much like a coach, a good financial advisor is responsible for preparing you for the ups and downs of the course, helping you overcome all obstacles, and helping you make it to the finish line.

Please call if you would like help keeping your eye on your goals.

You Must Have an Attitude (#1019-1584)

The dictionary defines attitude as “a mental position or feeling with regard to an object.” I define it as something you must have in order to achieve your goals in the market.

Long-term investing is not easy. The short-term thinking that goes on in our financial markets can make it difficult for investors to remain focused on their financial goals. Every newscast, newspaper, magazine, etc. is an immediate expert at reporting the obvious to you. It makes for good press and sells more advertising, but does you a disservice if you sell low.

Corporations continue in business, they increase their sales and earnings per share, and eventually that becomes reflected in the price of the stock. If we as investors base our stock market thinking on that fact and not let ourselves be swayed by day-to-day events, our investment decisions are likely to be much more rewarding. Remember, when we buy a stock, we hire management to run a business for us; and one of the main jobs of management is to solve problems and carry business on to new highs.

Please call if you would like to discuss your attitude in investing.

Help for Busy People (#1019-1585)

Are you a busy professional or executive trying to manage your own portfolio, but find yourself too distracted because you don’t have the time to properly manage your investments?

Let’s face it, managing a portfolio is a very time-consuming task. The research alone on available investment options can be a full-time job. Yet, since your business or profession (the one that allows you to invest in the first place) takes precedence, the time you have to manage your portfolio is limited.

One way to escape the demands of managing your own portfolio is to delegate some or all of your portfolio management tasks to a professional like me. I have been managing portfolios for many years, and I offer various options.

Obviously, I can save you time with my professional investment services. How much time you need to save depends on both your current schedule and your desire and ability to perform certain investment tasks yourself. If you feel you are too busy to give your investments the time and attention they deserve on your own, please call so I can help you.

Investing Cautiously (#0719-1570)

The key to building a secure financial future is prudent investing to make sure that your money is working for you through both good and bad economic times. Consider the following points:

  • Don’t invest solely in one investment alternative. Diversify your portfolio among different kinds of assets — cash, bonds, and stocks — and different kinds of investments within each asset category.
  • Don’t procrastinate about getting started. The sooner you begin saving and investing, the sooner your money will start working for you.
  • Don’t purchase an investment just because it is the latest hot investment. Make sure the future prospects of the investment are good.
  • Don’t invest before thoroughly examining the investment.
  • Develop an investment strategy that you are comfortable with to steer your investment decisions.
  • Regularly monitor your investments.
  • Maintain good records so that you don’t pay more in taxes than required.
  • Seek help and guidance. I’m here to provide guidance and suggestions for your investment portfolio.

Call for an appointment so that we can review your investments.

The Sailing Investor (#0719-1571)

I recently heard someone compare sailing to investing, and I think this analogy has a lot of wind behind it. You can sail to any destination without predicting the direction or the strength of the wind. Likewise, you do not need to forecast whether the market is headed up or down in order to make money. This is possibly the most difficult thing to accept about investing. We want desperately to know what will happen when we are facing risk. Our fear of the unknown has a great influence on our thought process. Since money is so closely tied to our sense of security, we want a guaranteed way to protect it.

However, we are not completely without rudders. In order to sail to a predetermined destination, you must properly measure the wind frequently. This takes both experience and skill. Sudden changes in direction or strength usually give some warning signs if you are paying attention; and when things do change, it is important to know what to do to accommodate the new weather.

Unfortunately, sometimes the only way to learn is by making mistakes. Seasoned investors know how to avoid sudden drops in wealth, partly because they have lived through enough storms to know the warning signs and partly because they have learned to reel in their sails proactively as the wind increases. However, they remain on the boat because they are trying to reach a destination and have learned to enjoy the journey.

Learning how to invest, just like learning to sail, takes time on the water experiencing many varied weather situations. An advisor obviously helps. For some, I am at the helm, and you are enjoying the ride. Others use me to help navigate. A few simply use me for ballast. I hope that together, we will always be moving forward, never capsizing, and working toward your destination.

Investing Is a Marathon (#0719-1572)

In counseling my clients, I frequently stress the need for them to set investment objectives. Similar to a goal of completing a marathon, my clients typically seek to meet certain financial goals. Perhaps your goals are to have a comfortable retirement, pay for your children’s or grandchildren’s college educations, ensure quality care for a family member, or leave a legacy to a charitable organization. Whatever your goals, it makes sense to have them in writing and share them with me as we periodically review your investments. By seeking professional guidance, your opportunities to meet these goals may be increased.

Investing also requires perseverance and discipline, just like training for a marathon. Take time to review your spending habits and budget to look for potential problem areas. Tune up your budget in areas that are out of line with your savings goals. Make regular contributions to your investment accounts, just like a runner continuously trains for a marathon. And remember, the hottest and most popular investments may not be appropriate for you, just like sprinting is not appropriate in a marathon.

Additionally, remember the financial markets aren’t always kind. Be prepared for the bumps along the way, just as a runner deals with the inevitable aches and pains of training. By setting reasonable investment goals, using professional management, and patiently building a diversified portfolio, many investors can achieve the financial and emotional satisfaction of completing their own financial marathon.

Keep Your Perspective (#0719-1573)

Despite the recent stock market volatility, I have not been receiving many phone calls from distressed clients. I believe this shows that my clients have avoided short-term thinking. This volatility is clearly the first test of nerves we’ve had in many years.

While it can be difficult to get through this volatility, I hope you will continue to regard your investments like your home. While the housing market goes through swings in value over time, you don’t rush to buy or sell your home based on those fluctuations. You are in your house for the long term, and the only value that matters is the ending value when you sell.

Think about your investments in a similar way. As long as you are investing for the long term, it does not matter what the value of your investments is today. What does matter is the value of your investments in 10, 20, or 30 years, when you will need the money.
As always, please feel free to call me if you would like to discuss any aspect of your investment portfolio.

Stay Focused and Patient (#0719-1574)

How should you as an investor deal with volatile market environments? First, carefully consider what your long-term goals should be. Second, work with your financial planner to select options that fit your time frame, risk tolerance, and return profile.

Never speculate, invest for the short term, or invest in fads. Stay focused and patient. If you do not understand the investment, do not invest in it. Do not be a panic buyer or seller.

Please call if you would like assistance in determining your goals and asset allocation.

Strategies for Today’s Investors (#0719-1575)

Like so many investors, you may be experiencing anxiety about current or potential market volatility. Recent declines in the equity market may have caused you some concern about where the markets are headed and what this may mean to your investments. At times like this, it helps to remember to keep a long-term perspective.

A long-term investment perspective is the key to weathering periods of market volatility. Long-term investors understand time tends to smooth out the short-term fluctuations of the financial markets. Taking the long-term view places sudden declines and gains in their proper perspective. Investment risk may even be viewed differently from a long-term perspective.

Maintaining a long-term perspective does not mean developing your portfolio and then leaving it alone. What it does mean is reevaluating your goals and investment strategies when conditions change. This may be the best time to take advantage of opportunities that could result in greater long-term rewards.

Please call if you would like to discuss your investment strategy.

Staying Calm during the Storm (#0419-1552)

It is not easy to stay calm during the storm of market volatility. However, it is helpful to learn how to do so. Here are two ideas to help you remain focused during the current market volatility:

1. Review your investment portfolio. Remember that when we set up your portfolio, we took the time to discuss your needs, goals, and risk tolerance to develop a portfolio that would help you pursue your objectives. Therefore, unless your goals change, your portfolio probably still represents your investment preferences.

2. Pay less attention to headlines. Dramatic stories predicting doom and gloom may make you want to sell everything. Remember that emotions should not guide your investment decisions. We have set up a properly diversified portfolio for you so that you can be comfortable for the long term. If you are no longer comfortable with the risk level in your portfolio or if you have life changes, please call so we can discuss it in detail.

Risk Tolerance and You (#0419-1553)

There is nothing like a single-day, 500-point drop in the Dow Jones Industrial Average to jolt investors’ notions of their own risk tolerance. When we discuss issues like risk, volatility, and timelines, we are not discussing abstract notions or hypotheticals. These concepts must be properly understood and integrated into the philosophy we implement when conducting an asset allocation and portfolio construction.

Many prospective and actual clients have said, “I have a moderate risk tolerance.” What that means is, “If the market is good, I have an aggressive risk tolerance, and if the market is bad, I have a conservative one.” Having the best of all worlds (the long-term performance of equities with the risk characteristics of cash) is the internal desire of many people, no matter how far from reality it may be.

Asset classes will fluctuate, and various investments will be in and out of favor at different times. It’s the job of a financial planner to uncover what a client’s individual risk tolerance truly is. Simple answers to risk profiling, like “conservative” or “aggressive” do not do justice to the requirement that you know what you are looking to do and what can happen along the way. Investment portfolios filled with stocks, bonds, cash, commodities, and funds constantly move up and down. Fluctuations exist all the time, and to avoid behavioral errors in portfolio management, your financial advisor needs to be aware of your risk tolerance and underlying financial objectives. Please call if you would like to discuss your risk tolerance and the current market volatility.

Investing with Emotion (#0419-1554)

If you truly want to take control of your financial destiny, you must ensure emotional reactions such as anger, impatience, denial, procrastination, and panic don’t lead you astray. How do you guard against that? By having a well-thought-out investment game plan you genuinely believe in and are willing to commit to for the long term.

Once a sound investment plan is developed, you have already gone through the process of understanding the market’s historical patterns, setting realistic goals, and crafting a strategy that takes market cycles into account. You also gain the perspective needed to avoid dangerous knee-jerk reactions when the market plunges. Having tempered destructive emotions, you will have the confidence and patience to remain with your original plan.

This is not to say investing should be mechanical and devoid of emotion. Certain types of emotions are critical in shaping your investment plans: What you want money to do in your life, how wealth ranks in your grand scheme of life, and how you feel about risk are all questions deserving thoughtful exploration.
Please call if you have any questions or concerns regarding your personal situation.

Time and Money (#0419-1555)

The goal of investing can be defined as storing and hopefully increasing your power to buy the necessities and luxuries of life. You do this either because you expect the cost of these things to increase in the future and/or because you expect your own income to decrease or stop.

If you cannot escape change, then investing demands educated guesswork about how things will change. I have found the real difficulty is caused by something that never seems to change: human nature. Investors lose sight of the humble reason for investing — to store purchasing power — and become caught up in the highs or lows of the moment. The roar of the crowd can be intoxicating, but it is easy to be trampled.

With the current market volatility, it is hard to know what to expect in the future. Eventually, people begin to absorb the recent past and move on. I am optimistic about the future. Human nature has a positive side that eventually tends to win.

I hope you find the basic tips in this newsletter to be helpful as you navigate the current and future investment world. Investing, like life, involves risk and change. My job is to help you understand and anticipate the change and manage the risk. As always, please call if you have any questions or concerns.

Investment Planning (#0119-1539)

If you are a new or seasoned investor, you need to keep one thing in mind about investing: the prices of stocks and bonds will move up and down. Although some investors may not have dealt with this until recently, this one truth is something we need to remember to keep our focus.

No one can accurately predict when the market will move up or down, or by how much. Because we cannot predict or control the market’s movements, we need to plan for any possible event by creating a diversified portfolio. Once your investment goals, risk tolerance, and time horizon are all assessed, a portfolio can be designed to meet your investment needs.

It can be difficult to stick with a plan when the market is fluctuating, so here are a few principles to help you in a volatile market:

1. Stay calm. Even though everyone around you may panic, don’t let them distract you. If you have second thoughts, remember that you are in it for the long term and that your portfolio is designed to weather ups and downs.

2. Don’t make quick changes to your portfolio. Although it may be tempting, it may not be wise to make sudden changes in your investment mix during a market downturn. Many experts will tell you that trying to quickly move your money around in a volatile market is rarely successful.

3. Stay diversified. If we worked together to develop your portfolio, then we diversified your investments to help keep you balanced from the brunt of market volatility. A benefit of diversification is that when the market falls in one area, your other investments are structured to help offset the loss with their own gains.

Hopefully, these will help you as you encounter stock market volatility. If at anytime you are uncomfortable with your portfolio, please call.

Managing Risk through Asset Allocation (#0119-1540)

Spreading assets over a variety of different investments (stocks, bonds, and cash alternatives) is perhaps the most important rule an investor can follow. Because no single asset class performs best in all economic environments, the performance of a diversified portfolio is expected to fluctuate less as losses from some investments are offset by gains in others.

As the stock or bond portions of your portfolio are refined, consider spreading investments among the various categories within a single asset class. As an example, diversify your stock portion among several segments to target growth, value, and blue-chip stocks, or across market capitalization to own large, medium, and small companies.

A bond allocation may be diversified to include instruments characterized by specific maturities (short-, intermediate-, or long-term) or different types of bonds, such as U.S. government, corporate, or tax-free municipal bonds. Also consider a mixture of domestic and international stock and bond investments.

How much emphasis should be placed on stocks for growth, bonds for income, and cash alternatives for safety and liquidity will depend on your tolerance for risk and time frame for pursuing financial goals.

An effective asset allocation strategy can help balance the risk assumed with the earned return. However, it is still important to remember that the stock and bond markets are volatile by nature. All too often, investors become nervous at the first sign of a market downswing and may be tempted to alter their plan. By understanding what to expect, an investor will be able to stay on course and resist the urge to revise one’s asset allocation based on short-term market movements.

Please call if you’d like to discuss asset allocation and your portfolio.

Periodically Review Your Plan (#1018-1518)

As we all watch the market’s up-and-down movement, some investors may panic and wonder if their stocks should be sold. As your financial advisor, my hope is that we have put together an investment plan that makes you comfortable. I believe I have accomplished this goal for my clients, and I would like to thank you for having the confidence in me and in your investment plan during this volatile market.

I feel strongly that I can help you ride out the ups and downs in the market by offering you the choice of reviewing your accounts as often as you need to feel comfortable. However, if any life-altering situations arise, such as health issues, company downsizing, new children or grandchildren, marriage, or divorce, please call. Anytime a major change in your life occurs is a good time to review your financial plan to ensure it will still help meet your goals and objectives.

In addition, if you know someone who might benefit from my services, please refer them to me.

Someone to Assist You (#1018-1519)

Why do you use doctors, accountants, auto mechanics, and other skilled professionals? Because you don’t want to learn medicine, the tax code, or auto repair. People want someone to evaluate their needs, as well as someone to assist in making decisions. They need someone to narrow the options so that intelligent, unemotional decisions can be made.

As your financial advisor, I am that someone who has the background, experience, and dedication to lead and assist you with your investment needs and goals.

Please call if you would like help making your investment decisions.

Pursuing Your Goals (#1018-1520)

Whatever your goals and whatever path you selected to help you pursue them, there will always be some other course or investment that looks like it may be a better alternative. Sometimes a change will be warranted, but only when it is consistent with your current strategy. Unfortunately, investors often switch from one investment to another for reasons unrelated to their goals. For instance, during periods of market fluctuation, some investors may be tempted to switch from stocks to cash. Or, during periods of low interest rates, some investors may switch from bonds to stocks. Often, these switches are inconsistent with their investment strategy, making it less likely for their investment objectives to be realized.

Remember that your investment strategy was designed only after giving careful consideration to your objectives, risk tolerance, and time horizon for investing. The strategy was meant to guide your investment decisions during all types of market environments, so changes should not be necessary due to market fluctuations. Remain focused on your investment objectives and stay the course. Feel free to call if you’d like to review your investment portfolio.

Basic Investing Guidelines (#0418-1488)

One way to help endure market volatility is to adhere to a carefully selected investment plan based on your financial needs and goals. Following these four investing guidelines may help your portfolio withstand market volatility.

Diversify your portfolio — To help protect your portfolio from market volatility, diversification can increase the probability that if the performance of one investment type is disappointing, others are holding steady or outperforming.

Take advantage of active management — Portfolio managers who have been in the business during the past 20 to 30 years have survived both bull and bear markets, so utilize their experience to help guide you through turbulent times. By taking advantage of active portfolio management, you are saved from the guesswork of choosing and monitoring each security on your own.

Control your emotions — It’s human nature to become nervous at the first sign of trouble and want to revise your investment mix. Understand your goals, establish a realistic plan to help achieve those goals, and stay with your plan through the market’s ups and downs.

Periodically readjust your investment portfolio — Even if your long-term goals remain unchanged, portfolios may change with market action, often requiring you to periodically rebalance your asset allocation. Your portfolio should be viewed as a changing investment landscape requiring careful attention.

Some of the most potentially rewarding investment strategies begin with a sound plan. Whether you’re saving for a comfortable retirement or children’s educations, looking to add growth potential to your portfolio, or seeking to protect more of your income from taxes, I can help you meet your objectives. Please call if you would like help developing an investment plan.

Resist Temptation (#0418-1489)

Whatever your objectives and whatever course you have selected to help achieve them, there will always be some other course or investment that looks better. Sometimes a change may be warranted, but only when it is consistent with your existing strategy.

Unfortunately, investors often switch from one type of investment to another for reasons not related to their investment objectives. For instance, during a period of market fluctuation, an investor may be tempted to switch from stocks to cash. Or during a period of low interest rates, an investor may switch from bonds to stocks. Often, these types of switches are inconsistent with their investment strategy, making it less likely these strategies will help achieve their objectives.

Remember that your investment strategy was designed after giving careful thought to your objectives, risk tolerance, and time horizon. The strategy was meant to guide your investment decisions during all types of market environments, so changes should not be necessary due to market fluctuations. Stay focused on your investment objectives and stay the course. Feel free to call if you would like to review your investment portfolio.

Call If You Have Concerns (#0418-1490)

When you entrust me with your investments, you are hiring me to watch over them. It is my responsibility to monitor daily market fluctuations and determine how and when they will affect you. I welcome whatever level of involvement you choose for your portfolio, but unless you are buying and selling on a daily basis, watching the daily ups and downs of the market may cause more stress than you want or need.

You and I have analyzed your investments and goals and have come up with a long-term plan based on your needs and risk tolerance. If we haven’t or if recent market fluctuations have you feeling uncomfortable, it may be time for us to review your portfolio. Please call to set up an appointment to evaluate your current situation.

Taking Stock (#0418-1491)

This an ideal time to “take stock” of your comprehensive financial situation in a variety of ways.

First, review your long-term investment objectives and the reason behind your asset allocation. This should provide reassurance that over the long term, you are on track to attaining your financial goals.

Second, examine your overall net worth. Stocks are just one component of your wealth. You may have cash in money market funds to meet current obligations, other interest-bearing investments, and real estate holdings.

Third, consider strategies to take advantage of the current market situation. One such strategy is to convert a traditional IRA to a Roth IRA. Another strategy involves rebalancing your portfolio using stock losses to offset capital gains.

Please call if you would like to address these issues in more detail.

Changing Your Investment Strategy (#0118-1477)

An investment strategy is designed to give focus and cohesion to your investment decisions. Yet this strategy will probably not remain constant over the course of your life. Significant changes such as retirement may require major changes to your portfolio. It is important to consider a couple of factors when shifting assets based on these changes.

Major shifts in allocations should generally be made over a period of time. If large amounts of money are involved, it is generally best to gradually shift the investments over time. To prevent investing at an inopportune time, make these shifts in equal installments over a period of two years. Consider monthly or quarterly changes. Anything longer than that may be too infrequent.

Consider the tax ramifications before making changes. Selling investments can result in significant tax liabilities. By carefully examining your investment portfolio, you may be able to find ways to accomplish this shift in strategy while minimizing your tax liability. For instance, if you have significant investments in a 401(k) plan, IRA, or other retirement plan, you can make changes in your allocation without incurring tax liabilities.

Look for other ways to accomplish the shift. If you will be adding significant sums of money to your portfolio over the time period of your transition, you may be able to accomplish the shift in allocation without selling any of your current investments. Any withdrawals should be made from the categories you are trying to deemphasize.

Call if you’d like help adjusting your investment strategy.

Evaluating Your Asset Allocation Plan (#0118-1478)

When setting up an asset allocation plan, it is important to remember several things:

• You first need to assess your own personal financial situation and goals. There is no ideal plan for everyone. Each individual investor’s particular financial situation is unique and should be analyzed as such.
• Circumstances change over time. Changes in both personal and external factors may warrant revisions to your asset allocation mix and/or particular investments within each sector of the mix.
• Diversification can be an important factor in reducing risk. Within each portfolio sector, there should be a reasonable number of different individual investments oriented toward the objective of that portion of your overall plan.
• Unless you have a great deal of time to research and remain current on all investment types, changes in tax laws, and domestic and world events, you may be better served in the long run to seek the advice of a financial advisor in setting up your investment plan and periodically reviewing it.

Please call if you’d like help evaluating your asset allocation plan.

Know Your Investment Personality (#0118-1479)

Knowing your investment personality, if you’re conservative, aggressive, or somewhere in between, has a direct bearing on which investment types you should select to help meet your financial goals. Your investment personality can also change over time.

If you’re a conservative investor, you’re more likely to define risk as the potential to lose principal value. As a result, you’re probably more concerned with safety and minimization of risk and, thus, are willing to accept a potentially lower rate of return in exchange for a lower level of risk.

The more aggressive investor, while certainly not indifferent to risk, is generally more concerned with maximizing returns and more willing to accept a higher degree of risk. This type of investor is less willing to invest too much money over long periods in fixed-rate investments.

Whether you’re a conservative or aggressive investor, you must take into account the effects of inflation and taxation on your investment choices.

Knowing your investment personality helps you select investments that could help you reach your goals more comfortably. Please call if you’d like help with the process.

Prudent Investing (#0118-1480)

The foundation to building a secure financial future is prudent investing to ensure that your money is working for you through good and bad economic times. Some items to consider include:

• Don’t invest solely in one investment alternative. Diversify your portfolio among different kinds of assets — cash, bonds, and stocks — and different kinds of investments within each asset category.
• Don’t put off starting. The sooner you begin saving and investing, the sooner your money will begin working for you.
• Don’t purchase an investment just because it is the latest hot investment. Make sure the future prospects of the investment are good.
• Don’t invest before thoroughly investigating an investment.
• Develop an investment strategy you are comfortable with to guide your investment decisions.
• Regularly monitor your investments.
• Keep good records so you don’t pay more in taxes than you are required.
• Seek professional help. Your financial advisor is available to provide guidance and suggestions for your investment portfolio. Call for an appointment so we can review your investments.

Risk in Investing (#1017-1453)

An important factor in determining how you will invest your money is understanding your tolerance for risk.  Risk tolerance typically refers to your ability to stay with an investment when it declines in value.  You should determine your risk level before you invest. Unfortunately, even if you think you understand your tolerance for risk, you generally won’t know for sure until you actually lose money in an investment.

Keep in mind there are strategies such as active management that can help reduce the risk in your portfolio.  Active management attempts to keep you invested during good markets but, more important, protects your principal during down markets.  A key to investment success in the long run is protecting yourself during major market declines.  Remember, a 25% loss requires a 34% gain to break even.  It is easy to see why capital preservation is so critical.

Today, people are confusing information for knowledge.  They are seeking rewards in the stock market without an understanding of the full risks.  If you or a friend would like more information on active management, please call.

The Disciplined Investor (#1017-1454)

Many potential investors do not achieve their financial goals.  This is often due to fear and greed.  The usual scenario is that the public hears about a great new “highest return ever” investment or guru and chases after it.  Once caught, they don’t know what to do with it.  If they don’t experience immediate gratification, they become scared, bail out, and chase after the next investment fad.  These individuals are often caught in the spiral of buying high and selling low.

The real success story (which is not usually focused on, as it develops slowly) is that an individual has a rational set of criteria for choosing stocks and the discipline to stick with the plan.

Sticking to a long-term plan is probably the most difficult thing to do in investing.  The disciplined investor recognizes the markets move in cycles and there is no investment that provides above-average returns every month, quarter, or even year.  Remember that one quarter’s performance is meaningless.  It is important to focus on returns created over a business cycle of three to five years.  Your goal is to obtain above-average returns over longer periods of time.  This is the real key to building your wealth.

Please call if you would like to discuss how you can become a more disciplined investor.

Asset Allocation (#1017-1455)

As a financial advisor, I am most concerned with helping clients pursue their financial goals.  When it comes to money management, I believe an asset allocation plan is the best way to manage clients’ money, because it focuses on something we can control — the amount of risk a person takes.  We cannot control returns, but we can decide how much risk a client is willing to take and then make appropriate decisions. Asset allocation does not assure a profit or protect against loss in declining financial markets.

Please call if you would like to discuss asset allocation in your portfolio.

Someone to Assist You (#1017-1456)

Why do you use doctors, accountants, auto mechanics, and other skilled professionals?  Because you don’t want to learn medicine, the tax code, or auto repair.  People want professionals to evaluate their needs, as well as someone to assist in making decisions.  They need professionals to narrow the options so that intelligent, unemotional decisions can be made.

As your financial advisor, I am that someone who has the background, experience, and dedication to guide and assist you with your investment needs and goals.

Please call if you would like help making your investment decisions.

Financial Review (#1017-1457)

Are you interested in how your portfolio is performing compared to the current market?  If so, please call.  We can review your investment objectives and discuss if your investments are meeting your short- and long-term financial goals.

Our lives are busy and constantly changing.  On occasion, your investments will need to change to keep up with your changing personal situation.  This financial review will help us both see where you should reallocate your assets in order to continue to work toward your financial objectives.  Remember this is your financial plan, and it should meet your needs.

Keep in mind that you should regularly invest to meet your financial needs for the future.  Even if you can only invest a small amount of money at a time, please do so.  When you invest for the long term, you can gain impressive benefits from compounding over time.  No matter what type of financial plan we designed for you, its success depends on what you put into it.

If we haven’t recently met to evaluate your current situation, please call.  We can discuss your financial overview, your current situation, and determine if changes need to be made.

Asset Allocation (#0717-1444)

As a financial advisor, I am most concerned with helping clients pursue their financial goals. When it comes to money management, I believe an asset allocation plan is the best way to manage clients’ money, because it focuses on something we can control — the amount of risk a person takes. We cannot control returns, but we can decide how much risk a client is willing to take and then make appropriate decisions. Asset allocation does not assure a profit or protect against loss in declining financial markets.

Please call if you would like to discuss asset allocation in your portfolio.

Someone to Assist You (#0717-1445)

Why do you use doctors, accountants, auto mechanics, and other skilled professionals? Because you don’t want to learn medicine, the tax code, or auto repair. People want professionals to evaluate their needs as well as someone to assist in making decisions. They need professionals to narrow the options so that
intelligent, unemotional decisions can be made.

As your financial advisor, I am that someone who has the background, experience, and dedication to guide and assist you with your investment needs and goals.

Please call if you would like help making your investment decisions.

Financial Review (#0717-1446)

Are you interested in how your portfolio is performing compared to the current market? If so, please call. We can review your investment objectives and discuss if your investments are meeting your short- and long-term financial goals.

Our lives are busy and constantly changing. On occasion, your investments will need to change to keep up with your changing personal situation. This financial review will help us both see where you should reallocate your assets in order to continue to work toward your financial objectives. Remember this is your financial plan, and it should meet your needs.

Keep in mind you should regularly invest to meet your financial needs for the future. Even if you can only invest a small amount of money at a time, please do so. When you invest for the long term, you can gain impressive benefits from compounding over time. No matter what type of financial plan we designed for you, its success depends on what you put into it.

If we haven’t recently met to evaluate your current situation, please call. We can discuss your financial overview, your current situation, and determine if changes need to be made.

Call If You Have Concerns (#0117-1409)

When you entrust me with your investments, you are hiring me to watch over them.  It is my responsibility to monitor daily market fluctuations and determine how and when they will affect you. I welcome whatever level of involvement you choose for your portfolio; but unless you are buying and selling on a daily basis, watching the daily ups and downs of the market may cause more stress than you want or need.

Hopefully, you and I have analyzed your investments and goals and have come up with a long-term plan based on your needs and risk tolerance.  If we haven’t or if recent market fluctuations have you feeling uncomfortable, it may be time for us to review your portfolio.  Please call to set up an appointment to evaluate your current situation.

Resist Temptation (#0117-1410)

Whatever your objectives and course you have selected to help achieve them, there will always be some other option or investment that looks better.  Sometimes a change will be warranted, but only when it is consistent with your existing strategy.

Unfortunately, investors often switch from one type of investment to another for reasons not related to their objectives.  For instance, during a period of market fluctuation, an investor may be tempted to switch from stocks to cash.  Or, during a period of low interest rates, an investor may switch from bonds to stocks.  Often, these types of changes are inconsistent with their investment strategy, making it less likely these strategies will help achieve investment objectives.

Remember, your investment strategy was designed after giving careful thought to your objectives, risk tolerance, and time horizon.  The strategy was meant to guide your investment decisions during all types of market environments, so changes should not be necessary due to market fluctuations.  Stay focused on your investment objectives and stay the course.  Feel free to call if you would like to review your investment portfolio.