David Lerner Associates: Sound Investment Strategies

David Lerner Associates: Sound Investment Strategies

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2016-02-20

Building a healthy investment portfolio requires some well-thought-out strategies and a smart investment mindset. It requires financial literacy. Whether you are a new investor or a seasoned veteran, here are some tips that could improve your chances of a creating a successful investment portfolio.

Diversify

There is a risk factor in any investment. According to FINRA, even conservative, insured investments, such as certificates of deposit (CDs) issued by a bank or credit union, come with inflation risk. They may not earn enough over time to keep pace with the increasing cost of living. 

The markets can become volatile from time to time. To sidestep the potential falls of any financial venture, it would be a good idea to spread your money across several investment categories, from stocks to bonds to real estate. Even further, you could diversify within categories. Diversification spreads risk and guards against a catastrophic decline in any one investment.

Rebalance 

Taking an active role in your investments is important. Some argue that once a year you should sit with your investment advisor and review the past performance and reevaluate your goals and strategies for the coming twelve months. 

Others say that it’s better to do this every quarter. [2] No matter the frequency, review your portfolio and make sure your mix of investments hasn't moved away from your original goals. This is also a great opportunity to decide what to sell and what to invest further money in to regain balance and continue growth. 

Fear 

Investors are known to experience fear and, according to studies, that fear is less about the loss of investment dollars and more about the fear of missing out on opportunities. [3] Fear can cause investors to make mistakes. Euphoria can cause just as many missteps. But by investing the same amount in the same investments on a regular basis, dollar-cost averaging takes emotion out of the equation.

Middle ground 

Don’t gamble with your future, especially when it comes to investing. The stock market should make for interesting dinner conversation, not life or death when it comes to your money. A sensible middle-ground of investment is the way to do that. Find a financial advisor who doesn’t chase investment rainbows, but rather pursues fundamental investment principles, regardless of market conditions. 

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities. 

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. 

Member FINRA & SIPC

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About

Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com

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Contact

Jake Mendlinger
Account Manager
Zimmerman/Edelson
516.829.8374 X 232
jmendlinger@zimmed.com

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