5 New Year’s Resolutions for Prudent Investors

The reality in the financial industry over the past couple years has been chock full of potentially upsetting words like turbulent, unpredictable, and anxious. Not the reality any investor wants to deal with on a regular basis, but reality all the same.

But even as the market attempts to correct itself, that doesn’t mean the prudent investor should worry too much about their securities. No, the great thing about our market is we’re free to build a portfolio that suits us. Sure, you’re never going to achieve 100% certainty that a particular fund will blossom to its fullest potential, but that’s why it pays (literally) to be prudent, tactical, and purposeful.

With that in mind, as 2017 blooms and we embark on another year of financial planning, here are five New Year’s resolutions to keep in mind when you build your portfolio this year. 

1. Stick to the Plan

The thin device in our pocket makes it all too easy to keep constant tabs on our investments. It’s a double-edged sword – when things are growing we’re happy, when things slip we’re frustrated. And frustration can lead to impulsive decisions. Build an investment plan this year that makes sense and then stick to it. Keep your emotions even – don’t get too high or too low – and use your best judgment when making decisions that will affect your future.

2. Research

And just how do we build a collection of securities that makes sense for ourselves and our families both now and in the future? Do your due diligence and collect as much research as possible. There are so many choices out there these days that not only will it pay to know more about the fund in which you’re investing, it will make the payoff that much sweeter.

3. Diversify

We tell people all the time to diversify their funds because it’s the best way to eliminate risk. Again, you’re never going to eliminate risk entirely, but if you invest your money in multiple sectors or industries, then your overall chances of growth will increase. This way you won’t feel the sting of a dipping fund as keenly when you own another product that’s going the other way: up!

4. Invest In Alternatives Methods (Like Life Insurance)

Alright, back to our roots. We talk a lot on the blog about life insurance, and we can never stress this enough: permanent life insurance can be a valuable investment both at the end of your life and while you’re still around to enjoy it. Investing in life insurance and employing the bank on yourself methodallows you to invest dollars into tax exempt policies at favourable rates.

5. Seek Advice. And Then Seek More Advice.

One thing we’ve learned over the years is that people in the lower mainland are initially reluctant to talk about their family’s finances. There are a lot of reasons for it – money can be a stressful conversation point, particularly living in such a relatively expensive corner of the world – but that doesn’t mean we should let our finances control our emotions. Whether you’re coming to an advisor or simply getting advice from a trusted friend, the more you know about the financial sector, the better equipped you’ll be to make prudent, and hopefully lucrative, decisions.

Want a hand planning your finances in 2017? Give us a call!

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This post was written by Marco Faccone