How does the popular song go? Everybody’s Working for the Weekend. While we at Sage Rutty certainly love what we do every day and are always happy to help our many wonderful customers, it’s a phrase that many certainly sympathize with. But let’s take this well-known lyric and give it a slight twist. Try this instead: Everybody’s Working for Retirement. Now THAT is something we couldn’t agree more with.
If you aren’t thinking about your retirement already, now is the perfect time to start. One way that many people like you choose to plan for their upcoming and even far-distant retirement is by creating an investment portfolio. But for those of you who do not currently have an investment portfolio, it may seem like a daunting task to take on. For those of you who do currently have an investment portfolio, it certainly doesn’t hurt to closely monitor its performance and make adjustments if needed.
Here are a few simple ways you can get more out of your investment strategy:
Define your Investment Objective
Knowing what you want to get out of your investment portfolio is crucial to the success of your portfolio. Asset allocation models will outline in detail aspects of your potential portfolio, including your current income and the potential for your income to grow as a result of capital appreciation.
Evaluate the Risk Tolerance
Risk tolerance is the amount of risk you are willing and able to accept when it comes to achieving your financial goals. As you consider risk tolerance, you must keep in mind that conservative investors accept the lowest amount of risk, that moderate investors will have a balance between stability and appreciation, and that aggressive investors have a high risk for loss if it means greater profits in the long run.
