What’s Your Investment Philosophy?
One concept you may hear financial advisors discuss is the notion of an investment philosophy.
Understanding your investment philosophy can help your advisor understand your tolerance for risk, the timeframe in which you need to accumulate wealth, and how you think investments are related to your financial goals.
Here’s an example:
- Don’t try to time the market
- Invest for the long term
- Diversification is key
- Keep costs low
- Keep taxes low
- Maintain discipline
- Don’t make investment decisions based upon headlines
If you’re unsure of what investment philosophy is right for you, your financial advisor can help you formulate one, based upon your principles, tolerance for risk, level of acceptance of investment costs, and upon your time horizon.
Having a clear investment philosophy gives you a yardstick against which to measure investment decisions. It can help you avoid investment fads and align your decision making with your financial goals.
Would you like an advisor to help you explore an investment philosophy? Click here to let us know you’re interested.