Strategic investing means taking on an appropriate amount of smart risk within a well-diversified portfolio of stocks, bonds, and commodities. A wise investor takes an appropriate amount of smart risk as part of a carefully considered investment strategy. There is a big difference between smart risk – the kind that boosts return – and silly risk, which is uncompensated risk.
The real risk lies in not investing–in retirement, our portfolios become our paychecks. They have to last for the rest of our lives. Keeping your assets purely as cash in a savings account is the equivalent of modern day mattress-stuffing, because your wealth cannot even keep pace with long-term inflation. Investing over time, on the other hand, means that that your hard-earned wealth can work for you. Beyond a liquid emergency fund of six to eight months’ worth of living expenses, your savings can be invested via a globally diversified portfolio.
Remember, the most powerful “asset” in your portfolio is time. The sooner that you invest, the longer your assets will have to grow. Investing over time, with a portfolio that is designed to create sustainable, long-term growth, can support your financial health for years to come. With a strategic investing plan and a properly diversified portfolio, you are well on your way to a happy and healthy financial future.
Your personalized financial plan should be designed to meet your long-term goals and allow your assets to grow to their full potential. A fiduciary financial advisor, such as LexION Capital, is legally required to act in your best interests and can help you create the right strategy for your situation.