Are you a ‘hardworking’ investor?
Next week, we observe Labor Day, a celebration of the American worker. You work hard your whole life with the hope that your efforts will ultimately allow you to achieve your financial goals, such as a comfortable retirement. But for that to happen, you may need to apply some of the lessons of the workplace to your efforts as an investor.
So, what are these lessons? Here are a few to consider:
Be consistent. The most successful workers are the ones who show up, day after day, and strive to overcome the inevitable obstacles that crop up. As an investor, you, too, need to be consistent in your habits – which means you should keep investing in all types of markets. If you take a “time out” every time the market drops, you might end up missing opportunities when the next rally begins.
Be flexible. When good workers see that something is not going well, they change what they’re doing. And when you invest, you also may need to make adjustments. If an investment has consistently under performed, or if you have too many others very similar to it, or if it just doesn’t meet your needs anymore, you may be better off by selling it and using the proceeds to invest elsewhere. This doesn’t mean you should constantly be buying and selling — in fact, you’ll likely be better off by purchasing quality investments and holding them for the long term. But you need to be flexible enough to make the appropriate moves at the appropriate times.
Be informed. The best workers are those who regularly update their skills and acquire knowledge that helps them do their jobs better. As an investor, you should also keep learning – about the investment world in general and about new opportunities for you to explore. And you should always understand what you are investing in – and why. Even if you work with a financial professional, you need to inform yourself about every aspect of your investment portfolio – after all, it’s your money and your future.
(To continue reading this article, please contact us today for a print or email subscription to the Jefferson Jimplecute! — (903) 665-2462, JIMPLECUTE1848@GMAIL.COM)