Investment
Planning
The UPS & DOWNS of the Market
There is one constant in the market ... Change! The
market goes up, the market goes down and the market
goes back up again. Most people that lose money in
the market do so because they react to change, forgetting
why they were there in the first place. It's been said
that, "It's not timing the market, it's your time
in the market that counts." While there are times
that you should enter and exit the market, you should
never be reactionary when investing.
You should first establish your investment strategy,
paying attention to your goals, objectives and risk
tolerances. Next you should establish your entrance
and exit strategy and then stay the course. If you
make deviation the exception, and not the rule, you
will increase your chances of a successful investment
experience throughout the ups and downs of the market.
Your FinBal® Qualified FSP can help you review
your entire financial arena and assess a course of
action that will best suit you. Pick up the phone and
take advantage of the one hour, no-cost consultation.
Let Financial Balancing® work for you!
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to top) Bearing the Bull
Isn't it amazing how different the market forecast
is depending on who it is that you're talking to? The
bond portfolio manager can tell you all of the reasons
why the market is falling apart and how bonds offer
the safe haven for the coming storm.
On the other hand, the stock portfolio manager will
generally tell you how there are great opportunities
available in stocks no matter what is happening on
the market.
So, who's right? Both... It's like the clock with
the dead battery. Twice a day it's correct! What's
important
is, when you refer to it for information. The bond
portfolio manager will be correct some of the time
and so will the stock portfolio manager, but neither
is 100% correct 100% of the time. There will always
be times that the market will adjust and there
will always be opportunities no matter what the condition
of the market. The key to winning is keeping a
balanced
portfolio that adheres to your investment goals
and objectives while taking your risk tolerances into
consideration.
Get together with your FinBal® Qualified
FSP to establish a well balanced investment strategy
that
is not ruled by conflicting opinion.
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to top) It's Not What You Make, It's What You Keep That Counts!
Generally, when it comes to investing, everyone only
talks of the money that you are going to earn while
never focusing on what should be a priority… Keeping
It! I'm not talking about market fluctuations. I'm
talking about taxes. Depending on each individual investor's
particular situation, careful consideration should
be given to investing a portion of their portfolio
in investments that provide tax benefits.
Did you know that there are investments that provide
federal housing tax credits which reduce your annual
tax bill? That's right, if you qualify, a $10,000
investment could provide a credit that would reduce
your tax bill
by an average of approximately $1,050 each and every
year that you are in the investment. A credit is
not a deduction, but rather a dollar for dollar reduction
of your actual tax bill. Investment risks associated
with federal housing tax credits include: liquidity,
marketability, capital loss, limited diversity, foreclosures,
and loss of future & past credits.
This is not a credit that is later recaptured - here
today and gone tomorrow.
There are some investments that provide deductions
that can offset and even completely eradicate
the taxes due on a large gain or unusually high earning
year's
income. Then there are also investments that
provide
income streams that are tax favored so that you
keep more of what you actually earn. Many of
these provide
income and appreciation while providing tax benefits.
It is of utmost importance that you remember
that there is no one-size fits all plan. During
the
one hour,
no-cost consultation your FinBal® Qualified FSP
can begin to help you to better understand what investments
are available and how they work while making sure that
they are suitable for your particular situations and
circumstances.
(contact | back
to top) Building a Future Plan with Present Benefits
Often, when asked if they are currently saving for
retirement, people will give answers with comments
like, "I can't afford to save for retirement right
now," or something equivalent. In all actuality,
these days, you can't afford to not take advantage
of the many ways that you can save for retirement.
If your employer is offering a means of putting away
a portion of your income on a pre-tax basis you would
only see your pay reduced by a portion of the amount
that you actually invest. For example, if you are
in the 25% tax bracket and you invested $100.00 a month,
you would only see a reduction of $75.00 a month
in
your pay check. Also, many employers match a portion
of what you invest. When you add this in, a $75.00
reduction a month in your check could immediately
be worth as much as $200.00 a month for investing assuming
a 100% match. If you were to earn an average of 8%,
that $75.00 reduction a month could be worth $117,800
over a twenty year period. Although this is a purely
hypothetical example and does not represent the returns
of any specific investment, which will fluctuate
in
value, it demonstrates that you cannot afford to
not be investing for the future.
Even if your employer doesn't provide a retirement
plan, you can still establish a plan that will
work for you. You should talk with your FinBal® Qualified
FSP about using the strategies that will best meet
your goals and objectives while adapting to your particular
situations and circumstances. They can help you to
establish, build and maintain a well balanced plan.
(contact | back
to top) The Right Way to Invest
If you were to listen to all of the investment "Gurus" out
there you could find yourself, well… CONFUSED! There
is no "one-size fits all" approach to investing.
Investment decisions should first and foremost be directed
by your risk tolerance levels. The market is essentially
divided into five areas of risk:
- Guaranteed
- Safe
- Conservative
- Aggressive and
- Risky
As your FinBal® Qualified FSP, I can help you determine
your risk tolerance levels and bring balance to your
investments. Take advantage of the one hour, no-cost
consultation.
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