by Parshalla Wood, Financial Advisor, Wedbush Securities, Inc.
Thinking about retirement can be both an exciting and overwhelming topic. Your retirement vision may be filled with many personal goals such as taking cruises, traveling to faraway lands, making that dream purchase and community involvement. But it may likewise be filled with many questions every time you see financial market news.
“Have I put away enough to make these things happen?”
“Are my investments positioned to take advantage of today’s market growth?”
“And, are my investments protected against tomorrow’s market downturns, so I can still reach my retirement vision?”
The investment strategy you select today can help determine whether you accomplish your goals during retirement! One of the most important steps you can take is considering whether your investments are properly diversified – or in simple terms, how they are spread around different investment vehicles. Here are three questions to ask when thinking about how your investment strategy is positioned:
- How will your investment strategy perform during market ups and downs? Every investment performs differently depending on the market environment. Often when one investment gains value (such as a stock), another investment may not (such as a bond). By diversifying among these different assets, you can potentially protect against volatility when the market shifts.
- Are you overly exposed to one particular sector or asset class? Every sector and type of investment is shaped by a plethora of factors. Just because one sector is experiencing growth today does not guarantee that it will continue growing tomorrow. Since all investing involves risk, it is important to understand these risks and work to ensure that your portfolio is not over-exposed to any one area.
- Does your strategy benefit from differing investment styles? Many financial products are designed by investment professionals to accomplish certain objectives or protect against certain risks. By diversifying among different products, you can take advantage of a wider range of expertise.
If you are unsure of the answer to some, or all of these questions, you are not alone! Diversification does not protect against a loss or guarantee a profit, however many investors seek the help of an investment advisor who possesses a deep understanding of the different investment opportunities and products available. By working with an advisor, you can take one of the most important steps toward gaining peace of mind that your future retirement goals can become a reality regardless of how the market performs.
Parshalla Wood is a Financial Advisor based in Prescott with over 48 years working in the financial services industry. As a proud 2017 Prescott LIVING Magazine’s Woman in Business, Par is dedicated to building a deep understanding of her clients’ needs and goals, and applying her industry expertise to help provide the best investment management and financial planning services possible.
Find Par online at WedbushPrescott.com, or by calling 928-777-0500.
Securities offered through Wedbush Securities, Inc. Member NYSE/FINRA/SIPC.
