Investment Planning

The investment world is ever changing and complex, but the principles of investing do not change. A long-term approach, asset allocation and diversification remain the cornerstones of building financial independence.

The cost of letting investor emotions impulsively drive investment decisions in bull or bear markets is higher than one may realize. There is a significant gap in returns between disciplined and emotionally driven portfolios. Historically speaking, investors tend to sell rather than buy stocks at the point of maximum financial opportunity. Conversely, investors are also inclined to buy instead of sell investments at the point of maximum financial risk. This explains the significant gap in returns between disciplined and emotionally driven portfolios.

We believe in the power of strategic investment planning because it gives the investor the edge against all other forces. Investment planning brings perspective, and thus becomes a potent weapon in removing investor emotion from the equation.

If you know where you are going, a few bumps along the way should not deter you from your destination. In investing, the real power lies in the strength of strategic planning and taking a long term approach.

Every investor is different with different financial objectives and needs. For all the differences though, every investor Ė experienced, or novice should approach investing with the following guidelines in mind.     

††† Develop a plan that will map the way to your goals.

††† Understand market cycles. Realize that markets go up and down. As such, investors should not be surprised, become overconfident or panic in light of good or bad news.

††† Use reason not emotion when investing. Investors should not buy investments on a whim or sell upon a sudden downturn.

††† Keep in mind the downs are temporary, and the ups are permanent. When the markets go south, donít bail out. Consider making new investments, but do your homework first.

  Make market fluctuations work for you. Dollar cost averaging removes the emotional factor from investment decisions, enabling investors to buy more of an investment when prices are low and less when prices are high.

 The information contained in this commentary is designed to provide you with general information only, and is not intended to be comprehensive advice applicable to the circumstances of any individual. We strongly urge you to seek professional assistance before acting upon information included herein.

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