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Friday, May 6, 2016

Learning to Save for the Future

Don’t underestimate the importance of liquidity.  Throughout your investment journey there will be situations that arise requiring immediate access to your assets.  Personal emergencies and early retirement are both very real examples that may require you to liquidate certain assets to cover expenses.  If you do not have enough liquid assets, you may have to dip into illiquid investments which may mean paying stiff penalties.  Not understanding the importance of liquid assets can cause loss of positive investments and a gain in stress and frustration.    

As your age goes up your risk should go down.  There is no sense in aiming for one last homerun when there is less time to reap the benefits of a win and less time to make up for a loss.  Rebalancing your portfolio can help in reestablishing the original level of risk by resetting all asset allocation.  Although this may get rid of any possible big gains it will, more importantly, get rid of any possible big losses.

Be aware of biases.  Liking a company does not mean you should invest in that sector and neither does working in one.  Getting attached to specific investments will make you highly vulnerable to fluctuations within the economy and can decrease the value of your portfolio by extreme measures.  Diversification of investments is key when looking to reduce risk and achieve steady gains.  

Markets will always rise and fall so it is important not to panic.  You should always strive to keep your financial goals within reach even when going through shocks within the market.  This entails staying invested and staying positive. 


Posted by: Patrick Carroll at 4:27 PM
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This material is intended for historical purposes and may be outdated. Its contents should not be relied upon as current information. For more up-to-date information regarding these topics, contact your financial professional.







All information herein has been prepared solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. Securities offered through Triad Advisors, member FINRA/SIPC. Advisory Services offered through ACI Partners, LLC. ACI Partners, LLC is not affiliated with Triad Advisors.