In this conversation, we break down how your goals, time horizon, and need for your money should influence how you invest. We also discuss why two people who are the same age and both planning for retirement may need very different asset allocations.
You’ll learn:
- Asset allocation vs. diversification and why they are not the same
- Why your investment strategy should be based on your financial goals and time horizon
- Why being the same age as someone else doesn’t necessarily mean you should have the same asset allocation
- The difference between “return of my money” and “return on my money”
- How short-term goals, such as buying a home, can require a different approach than long-term retirement goals
- Why reacting emotionally to market declines can interfere with your financial plan
- Why financial planning can help you focus on your goals instead of trying to predict what the market will do
- How diversification can create opportunities to rebalance your portfolio
One of the key messages from this conversation is simple: stop listening to the noise and focus on what you’re trying to accomplish.
If you’re approaching retirement or trying to make smarter investment decisions, understanding the why behind your portfolio can be just as important as understanding the investments themselves.
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