What Does It Take to Be a Smart Investor?

What Does It Take to Be a Smart Investor?

August 02, 2018
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There is no shortage of advice about the importance of investing. Anyone who wants to learn about investing will find on media channels and in print publications a plethora of tips and conflicting information. From my perspective as an independent financial advisor, I understand why so many potential investors are confused. Contrary to the media presentation, smart investing is not quick and easy. It requires making wise and informed decisions.

Understanding a few fundamental investment principals can be a great place to start. It can give you a better framework for comprehending the information as you take in the ideas. It can also provide a context for evaluating the concepts and strategies suggested.

The Insights resource on my website offers a presentation on five smart investing principles. It covers in depth these key concepts that can help you grasp how to create an investment portfolio to pursue your goals. I recommend that you watch the presentation. Here is a brief look at the five principles:

  1. Estimate your time horizon. Is your investment horizon three years or 30 years away?
  2. Know your risk profile. Can you tolerate big swings in the value of your investments or will you need less volatility?
  3. Diversify. Diversification helps manage the risks inherent in any investment portfolio.
  4. Consider the effects of taxes and inflation.
  5. Get started now. When it comes to investment goals, the more time you have, the better.

Following a few smart investment principles can make your efforts much more effective. But it doesn't end there. Successful investing requires an ongoing effort and commitment to learning more.

Phillips Financial Strategies on Capitol Hill is based on the principle that education and understanding of your current financial situation are critical if you are going to make wise and informed decisions concerning your future financial condition. If you have any questions or concerns about your current financial situation or wish to schedule an appointment, please contact us. 

Material discussed is meant for general illustration and/or informational purposes only, and it is not to be construed as investment, tax, or legal advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon when coordinated with individual professional advice.