Time Is Your Ally When It Comes To Your Portfolio

Clearly, time can be a better ally than timing. The best approach to your portfolio is to arm yourself with all the necessary information, and then take your questions to a financial advisor to help with the final decision making. Above all, remember that both your long- and short-term investment decisions should be based on your financial needs and your ability to accept the risks that go along with each investment. Your financial advisor can help you determine which investments are right for you. Please consider the following points:
1. Historically, a buy-and-hold strategy has resulted in significantly higher gains over the long run, although past performance is not indicative of future results.
2. A big risk of market timing is missing out on the best-performing market cycles.
3. Missing even a few months can substantially affect portfolio earnings.
4. Market timing strategies — which range from putting 100% of your assets in or out of one asset class to allocation among a variety of assets — are based on market performance expectations.
5. Market timing is best left to professional money managers.
6. Though buy-and-hold is a smart strategy, regular portfolio checkups are necessary.
7. Time horizon is particularly important when determining asset choices.
8. Riskier investments are more appropriate for longer-term goals, and as goals get closer, portfolios should be rebalanced.
9. Even in retirement, portfolios should contain investments for earnings to keep pace with inflation.
10. You should consult your financial advisor when making asset allocation decisions.
© LPL Financial, created by Standard & Poors
Securities offered through LPL Financial, Member FINRA/SIPC. Advisory services offered through Wealth Enhancement Advisory Services, a registered investment advisor.


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