Everyone should have an investment portfolio to save for retirement and other financial goals. Many people don’t realize their 401(k) or individual retirement plan is essentially an investment portfolio. Retirement accounts are probably the most common types of investment accounts, but you can invest money outside of them, too.
There are many investments, such as stocks, bonds, mutual funds, options, real estate property, gold, and silver. It’s smart to diversify your investments in the stock market to mitigate your risk of loss, but you may also want to invest in real estate or other assets. We recommend talking to our financial advisors to determine the best strategy for you.
Investing is a simple transaction. As an investor, you purchase ownership in a company. The company uses that money to grow and generate income. In return, the value of the stock increases, and you may even receive dividends. Other investments are safer but come with lower yields. For example, Treasury bonds offer a guaranteed return, but the interest rate is much lower than the potential gain you can see from investing in stocks.
Our team of financial advisors can help you set up your investment accounts and purchase assets for your portfolio. You can also invest through your employer’s retirement account if they offer one. Investing for retirement is a great way to save taxes while preparing for your financial future.
Investment management can be time-consuming. Your portfolio needs regular attention to ensure your assets meet your goals and objectives you set in the beginning. It’s important to evaluate the performance of your assets regularly. This allows you to make better decisions about which assets to keep and which ones to sell. Your portfolio may also need to be rebalanced from time to time as your assets increase and decrease in value.
If you invest all of your money in one industry or company, you’re putting your portfolio at significant risk. There’s no guarantee the industry will be stable when you’re ready to retire, and companies disappear even more frequently. By diversifying your holdings, you can spread the risk a little. Some companies in a particular industry may struggle, but other sectors will make up the difference with greater returns.
Some employees receive stock compensation from their employer, and they’re often heavily invested in one company or industry. If the company goes under, the employees lose their job and their investment accounts. Our investment advisors can help you manage your portfolio, protecting you from such one-sided risk exposure.
Lots of people think investing is risky. However, not investing your money is actually riskier. Did you know that interest rates on savings and treasury bonds don’t even outpace inflation? This means when you save money, you actually lose money. To be fair, there is a risk of losing money with investments, too, but there are ways to mitigate those risks.
Our investment managers follow different strategies to mitigate risk. We set up your portfolio to match your goals, timelines, and risk tolerance. We also use diversification strategies to mitigate risk of loss in any particular industry or sector. Finally, working with an investment advisor can also help you mitigate risk, because you can benefit from our experience.
If you want to keep some of the money you’ve earned for retirement or another point in the future, you need to invest. Merely saving money for the future doesn’t help you keep up with inflation, which means you actually lose money in a savings account. Investing a portion of your earnings regularly is the best way to build wealth and prosperity for yourself and your loved ones.
Investing doesn’t have to be complicated when you work with our investment advisors. We explain how you can invest your money to build wealth and prepare for retirement. Call us today to schedule a consultation where we talk about your investment goals and objectives. It’s time to take action for your financial future.