HOW TO KNOW YOU’RE INVESTED IN THE RIGHT PORTFOLIO
From time to time we come across lists and articles on investing. And we’ve taken a few of the items we’ve seen over the years and written a little commentary based on how we serve you.
A year from now, you plan to own similar investments.
We believe ‘winning’ in the market begins with understanding ‘why’ you are allocated as you are. Timing and changing strategies rarely produce the long term results investors need to fund their retirements. Sticking with an allocation that is rebalanced and invested with purpose is the best way to ‘Win’ in retirement.
You’re so well-diversified that you always own at least one disappointing investment.
This is probably one of the hardest lessons in investing and represents the value in diversification. A properly diversified portfolio is always going to have some asset classes (i.e. investments) out of favor with others being the bright spots. The key is to own them both since timing them consistently is impossible.
When the stock market is volatile, or even decreasing, you are not uncomfortable.
You realize that the stock market is volatile and the temporary declines of 14% inter-year and greater than 20% every 5 years are normal. That’s precisely why stocks return more over the long term than other less volatile investments.
For every dollar you’ve saved, you have an eventual use in mind — and you are invested accordingly.
Dollars that you have saved, but aren’t needed for many years in the future, should be invested accordingly. The dollars needed soon should be in less volatile (i.e. lower return) investments. However, don’t shortchange your resources the ability to outpace inflation when they are needed far into the future.
You can remember the last time you rebalanced.
Well, you might not be able to recall if you have, but the good news is that as a client of GuideStream Financial, you have your portfolio(s) rebalanced at least annually. We help you stay true to your long term investment and retirement objectives.
You never say to yourself, “Wow, I didn’t expect that.”
This is our goal. Through preparation and education, you understand that year to year, your portfolio will fluctuate depending on contributions, withdrawals and returns – but that in the end, you have a good working knowledge of how your cash flow will work over time. We know you don’t like surprises and neither do we. Some years, things may be fruitful and other years they may not be. What’s most important is that we both know the long term goals and that is where we focus.
We appreciate your continued trust and are honored to assist you on your stewardship journey.