Investments mean different things to different people. I’d like to clarify that this section is about non-retirement investing. We will discuss retirement shortly, but there are major differences between investments and retirement. For investments, I’m referring to a second home, real estate, stocks, your kids’ education, even your stock options at your work.
Everyone knows that you have to buy low and sell high to make money in the stock market. What has gotten complicated is how you do this. There are index funds, mutual funds and individual stocks. Then there are hedge funds, separately managed accounts and wrap accounts.
Your strategy should be customized by your beliefs on how you want your money invested. There are many ways to achieve your goal, and your advisor should be putting together the strategies and allocations based on your criteria.
My experience in this past decade has taught me to focus on the long-term goals of the client. This allows us to truly understand when the client will need their money and how much risk to invest their assets with. During the 2009 recession, while the market was near historical lows, we encouraged our clients to add to their portfolios.