The Most Important Investment Decisions

Many investors believe stock picking or choosing the hottest stock fund is the path to wealth and accumulation. Many studies indicate this path produces poor results driven more by behavioral errors (buy high, sell low – also known as fear and greed). Prudent investment management addresses investment returns and risks. The historical evidence shows that asset selection with indexing has provided sustained outperformance versus active funds. The data shows cost effective asset selection greatly increases your odds of better investment returns. How can we overcome behavioral errors and better mitigate investment risk?

Research shows that asset allocation is the most important decision you can make to control risk. An intelligent, diversified asset mix balances the growth you need, with adequate income and stability appropriate for your goals. Periodic portfolio rebalancing maintains risk control and instills a “buy-low, sell-high” discipline. This proven method is more effective than trying to time market highs and lows when emotions are high and helps avoid behavioral mistakes that can destroy long-term value.

What’s the Whole Plan?

Investment is important, but its only part of the solution. As you near retirement, it’s vital to combine sound investment discipline with thorough and thoughtful financial planning. It’s not just what you make, but what you can take that matters. Peace of mind comes from knowing you are prepared and protected.

What’s a safe path between saving, spending, and achieving your retirement goals? What you don’t know can expose you to unnecessary risk, loss of capital, and less security.

 

 

Jerry Matecun – Founder, President
Expert guidance to plan your future, preserve your lifestyle, and retire with confidence. For a confidential consult, contact me at jerry@compoundvalue.com or 949-273-4200.

 

PLEASE NOTE: Nothing herein constitutes investment, legal, or tax advice. For details please see Disclosure.