How Can You Improve Your Financial Fitness This Year ?
How Can You Improve Your Financial Fitness This Year ?
This article was written by Edward Jones for use by Brian Callaway , Financial Advisor
If one of your New Year ’ s resolutions is to get healthier , you may already be taking the necessary steps , such as improving your diet and increasing your exercise . Of course , phsycial fitness is important to your well-being – but , at the same time , don ’ t forget about your financial fitness . Specifically , what can you do to ensure your investment situation is in good shape ?
Here are a few “ healthy living ” suggestions that may also apply to your investment portfolio : easy to put on a few extra pounds . And , just as inadvertently , your portfolio can tack on some unneeded weight , too , in the form of redundant investments . Over time , you may have picked up too many similar investment vehicles , resulting in an overconcentration , or “ flabbiness ,” that can work against you , especially when a market downturn affects the asset class in which you ’ re overloaded . So , you might be better off liquidating some of your duplicate , or nearduplicate , investments , and using the proceeds to help broaden your investment mix .
Build endurance – Just as exercise can help build your endurance for the demands of a long life , a vigorous investment strategy can help you work toward your long-term goals , such as a comfortable retirement . In practical terms , this means you will need to own some investments with the potential to provide long-term growth . These are the investments that , ideally , you can hold on to for decades and eventually reap the benefits of capital appreciation . Of course , growth-oriented investments , such as most types of stocks , will rise and fall in value over the short term , and there ’ s no guarantee of profits , or even preserving principal . But if you choose wisely , and you ’ ve got the patience and discipline to hold on to your investments through the market ’ s ups and downs , you may well be rewarded .
Get proper rest – Many studies have shown that we need adequate rest to stay alert and healthy . In your life , you ’ ve probably already found that if you over-tax your body , you pay a price in your overall well-being . If you look at your investment portfolio as a living entity – which , in a way , it is , as it certainly provides life to your goals and aspirations – then you can see that it , too , can be weakened by stress . And one of the main stress factors is excessive trading . If you ’ re constantly buying and selling investments in an attempt to boost your returns , you may rack up hefty fees , commissions and taxes – and still not really get the results you wanted . Plus , if you ’ re frequently moving in and out of different investments , you ’ ll find it hard to follow a unified , long-term strategy . So , confine your trading to those moves that are really essential – and give your portfolio a rest .
Maintain an ideal “ weight ” – You can help yourself stay healthy by maintaining your ideal weight . This can be challenging – as you know from the recently finished holiday season , it ’ s
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To enjoy your life fully , you ’ ll want to take care of your physical and financial health – and , as it turns out , you can make similar types of moves to help yourself in both areas .
Brian Callaway , Financial Advsior 863 Flat Shoals Road , Suite 300 , Conyers , GA 30094
770-918-0725 • www . edwardjones . com
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