When kids go back to school this fall, how much knowledge have they lost over summer break? While the stats vary, it’s not just students who can relate to “summer learning loss.” Did you put important investment decisions on the back burner over the summer?
Now that school’s back in session for most of the country, it’s also a good time to send your investments back to school for a refresher. That way, you can be confident they’re up-to-date with any changes in your life – and ready for the future.
Are you concerned about how to sift through all the headlines about Brexit, speculation over Fed rate hikes, the upcoming presidential election and other global political uncertainties? Fortunately, sending your portfolio back to school doesn’t require that you ace a current events quiz. Concentrate on the bigger picture, and make sure you’ve accounted for any changes in your life.
A good lesson is to keep investing simple – own a wide variety of investments that perform differently from one another. In other words, diversify your portfolio. That way, it’s well-positioned for any of these current events – and others – that affect the markets. You may own investments that have recently disappointed and wonder whether diversification works. Staying diversified isn’t easy because investors tend to be least interested in owning out-of-favor investments, and those frequently perform better. Remember, without your having to try to predict, an appropriate mix of investment types – also called your asset allocation – can help you stay prepared for what happens next.*
Stick to the following three R’s to help keep your investment strategy on track.
Taking your investments back to school is a way to stay focused on time-tested strategies for your portfolio. The three R’s of reviewing, rebalancing and refreshing your investment portfolio can keep you disciplined – and your financial advisor can help you track your progress toward achieving your goals over time.
Diversification does not guarantee a profit or protect against loss.