A well-defined investing strategy is one of the cornerstones of a successful financial life. While investing techniques vary widely, all good strategies are built on the same foundation. Balance. Schwabcore Management offers two main investing strategies. The approaches are different, but built upon 6 core principles that you should keep in mind.
Understanding the principles of solid investment.
Successful investments comes not in hoping for the best, but in knowing how you will handle the worst. Always have it in mind that no one in the stock market knows what is going to happen next. Some things can be predicted; most things cannot. Since nobody fully knows what is going to happen in the future, your plan must accommodate for the fact that the investment markets will experience some unexpected downturns every now and then. This is where it is good to invest with us as our investments provide structure security and growth.
Interestingly, it is possible to assemble some lower-risk investment combinations that give pretty much the same returns over time as higher-risk ones. Schwabcore strategies offer portfolios that combine assets and funds in various combinations in order to reduce volatility and risk while still achieving attractive medium to long-term returns.
Your investment plan must have easy-to-understand, clear-cut rules. There must be no room for differing interpretations. You must be able to make your investing decisions quickly and with confidence. This means reducing your decision making to numerical guidelines as much as possible. A strategy that calls for a significant investment in small company investments is not as helpful as one that calls for 30% of your portfolio to be invested in small funds.
As much as possible, your strategy should not only tell you what to invest in, but also how much to invest and when. We help you to set the right rules for you, so you know your parameters and what you need to do to stay on financial track.
Your investment plan must be realistic concerning the level of return you can reasonably expect. We receive many requests asking us to recommend safe investments that will guarantee returns of 25% or more. If by safe they mean theres no chance of the value of the investment depreciating, then we do not know of any investments like that. Investments that are safe in that sense pay less than 20%.
Our goal is to help you incur the least risk possible and still achieve a solid return. Your asset manager will keep you informed of what is achievable and what can be done to improve your current investments.
Start Small Grow Big
Your investment plan must allow you to begin investing in small amounts (10,000) then grow big. Get to know how we perform and become familiar with us. Once you are comfortable add to your investments and watch them perform.
To learn the last two rules of investing smart contact one of our Asset Managers and arrange a consultation. We want to help.