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Average is not good enough … Our goal at Family Investment Center is excellence. We find excellent investment products and supervise an excellent service package. We maintain a library of excellent research materials and financial planning resources. We also demand top safety and security for our clients.

We won’t settle for average. We continually seek top managers or securities and meld them into superior custom portfolios. Each palette of investments is carefully tailored to personal or family goals. We enlist excellent managers, research, resources, and effort for our clients. Don’t settle for average. You deserve excellence.

Please search our blog posts for answers to common investment questions, and we look forward to sharing our knowledge and experience with you first-hand.

Investment Advice is Actually Applied Portfolio Science

 

Practical Steps Toward Solid Goals With the Right Investment Advice

 

Investing isn’t about guessing at stocks and bonds or simply selecting which bonds might have the highest interest rates. To the contrary: managers looking over large portfolios, such as pension plans, university foundations and charitable endowments utilize applied portfolio science in a deliberate way, and it’s investment advice you can use in your own planning.

In a practical sense, these large portfolio advisors are looking more at the forest and less at the trees. You can use this philosophy as you look at your 401(k) or IRA investments. If investing has never appealed to you, it should be mentioned that it can actually be fun. Surely you know some people who enjoy the challenge of it. However, be warned – if you’re getting a thrill out of investing, you might be looking at all the trees and have no eye on the forest.

Your winnings on a hot stock might be a thrill, but how many losses did it take to get there? And did you just break even? Results matter, and these aren’t the results you want. If you’ve made a decision that has a potential swing in your eventual portfolio of $100,000, $50,000 up or $50,000 down, what would you do with the $50,000 extra? Buy a better car? Add a cruise or two to your vacation calendar? Upgrade your housing option?

What if the portfolio suffers the $50,000 down? What will you give up? Vacations? Drive an older or cheaper car? Medical insurance? Prescriptions? Rent? You can’t be focused simply on making money – you have to have a plan for long-term results that will set you up for the future when your career ends. This might require some behavioral changes that put less focus on toys, such as bigger homes and faster cars.

Fortunately, you have measurements all along your investment journey to assist you. Here are some practical solutions you need to consider as you plan your strategy:

  • Use a goal-based system for finance and investing. What is the upside and downside of achieving those goals?
  • Internalize that reward or penalty for each financial goal. Often, the penalty is far more powerful than the reward.
  • Don’t impose artificial schedules on something that can’t be scheduled. Investing works, but the cycles and time required are irregular. The stock market, especially, grows in fits and starts.
  • Forget the “get rich quick” stuff. The hot stock tip or lottery ticket are long shots. They aren’t a practical solution for reaching your goals.
  • Find a good fiduciary advisor to help. Not next week or next month, or “when I get some money.” Today. You surely fall into one of two categories: you know what you need, and a professional can help you get better, or you don’t know what you need, which is an even stronger case for getting help.

At Family Investment Center, we bring the investment advice that is customized to fit each individual situation. Come talk to us in our commission-free, jargon-free setting and we’ll help you see that “Money is freedom, and freedom is fun.”

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