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What Should I Do with My Investments? [5 Guiding Principles] Thumbnail

What Should I Do with My Investments? [5 Guiding Principles]

Political and social unrest.

The challenges of navigating the pandemic.

How to get our economy restarted?

2021 is off to a dramatic start.

You don't control many issues such as the geopolitical reactions, but you can choose how you respond to them.

These geopolitical forces affect our investments, and we control what we do with our money. This is an excellent time for you to revisit your strategy.

Get investment clarity with a financial advisor

Here are some guiding principles worth considering:

1. Balance

Balance is more important now than last year, this time. The stock market has been rocking to some new levels, but not all investments are alike. The considerable growth as a sector has done substantially better than other asset classes and most likely represent a larger percentage of your portfolio.

It is essential to rebalance ideally no less than annually, and now is a great time given the market and political events in this pandemic.

2. Tailored Advice

Your advisor should partner with you in giving specific advice based on your unique goals and needs. Understand how you best get your financial information and coordinate with an advisor who delivers information in a meaningful way.

3. Investing in Your Needs and Values

You may want to invest in a socially responsible company, and diversity and inclusion may be what you want your investments to reflect. There are many more ESG (Environment Social Governance) investments available, and if those values are essential, it is possible to have your portfolio be aligned with your values.

If geopolitical issues are crucial, know you can vote with your money and what companies and governments you want to support.

4. Think Long Term

Don't invest your short-term money in something that can fluctuate in value and potentially lose money when you need to sell and use those funds. For most short-term money needs, cash, certificate of depots, and short-term debt instruments work.

For your longer-term horizon, a diversified portfolio can potentially have the best opportunity to grow over time. Having a different game plan for different money buckets is essential and will help you navigate the changes.

5. Align with an Advisor Who Speaks Your Language

Financial advisors often get caught up speaking industry jargon, but if you don't understand what they are saying, it will be like they are talking another language altogether. Seek out a professional who can explain items in terms that are meaningful to you.

An advisor should work with you to help build your knowledge and share ideas and changes so you can be part of the process. Take time to agree on how often you want to meet with your advisor to discuss your investments.

Does your advisor share information via email, video, or social media? Is that a way you enjoy learning?


It looks like 2021 and beyond will undoubtedly be brimming with change.

If you need help coming up with a financial game plan to manage these changes so you can work toward financial independence, schedule a free call with us today.

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Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

All investing involves risk including loss of principal. No strategy assures success or protects against loss.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.

CDs are FDIC insured to specific limits and offer a fixed rate of return if held to maturity, whereas investing in securities is subject to market risk including loss of principal.