WAXHAW, NC –
- Know yourself. When we reach a certain age, most of us know ourselves pretty well. But you don’t have to wait decades to gain this knowledge – at least not when it comes to investing. For example, you should quickly gain a good sense of your ability to withstand risk. How? Just consider how you react when the market declines sharply. If you find yourself losing sleep over your losses – even if they’re just on paper – you might be taking on too much risk for your own comfort level. Conversely, if market downturns don’t bother you as much as lack of growth in your portfolio, you might be investing too conservatively for your own risk tolerance.
- Take a longer-term perspective. When we’re young, we sometimes are more inclined to desire instant gratification – we want results now. Translated into the investment world, this could mean we want to see big returns in a short period. However, despite popular mythology, it’s quite hard to turn enormous profits on investments overnight – or even over weeks or months. But as the years pass, we learn the value of thinking long-term – how investments we made years ago, and have added to steadily, are now yielding results that can help build the resources we need to reach our objectives.
- Don’t go it alone. Some of us, when we’re young, have a tendency to think we have all the answers and don’t need much help in our endeavors. But age gives us the wisdom to recognize that, although we may have acquired much knowledge over the years, we can still use some help in specialized areas, such as creating a long-term investment strategy.
These suggestions are appropriate for anyone – and they can help you on your journey toward your goals.
Edward Jones, Member SIPC