Did you resolve to lose weight, stop smoking or act on another life goal this year? Although it’s only a few weeks into 2017, many people have already broken their New Year’s resolutions. Instead of new resolutions, consider improving your habits, including your financial fitness. Good financial habits are vital for achieving your goals. Five ways to improve your habits are to automate, investigate, calibrate, allocate and participate. And your financial advisor can help reinforce these good habits, which may make a big difference in your financial future.
Many of your best habits are automatic because you don’t have to think about them. And good financial habits can become as ingrained as brushing your teeth – but fortunately, your financial health can improve without doing anything twice a day. Regular checkups with your financial advisor can help you stick with your strategy and work toward your long-term financial goals.
Diversification does not guarantee a profit or protect against loss.
Investing in equities involves risks. The value of your shares will fluctuate, and you may lose principal. Special risks are inherent to international and emerging markets investing, including those related to currency fluctuations and foreign political and economic events.
Before investing in bonds, you should understand the risks involved, including credit risk and market risk. Bond investments are also subject to interest rate risk such that when interest rates rise, the prices of bonds can decrease, and the investor can lose principal value if the investment is sold prior to maturity.