The Fundamentals Of Investing Successful Strategies To Manage Tough Times

To live a happy life, there are some things in this world you simply have to accept. Like taxes. Or the rain. Or fluctuating stock markets. While most people (grudgingly) live with taxes and bad weather, learning how to manage volatile markets remains the big challenge.

Over the last three years, investors have been put to the test. High-tech's fall from grace, terrorist attacks, corporate accounting scandals and the threat of war have taken their toll on markets. Fortunately, there are strategies to get you through these times. Allow me to share them with you.

Don't Wait

In this industry, there's a quote that says the best time to invest was 20 years ago. Since you can't turn back time, the next best strategy is to invest early. Building wealth and reducing your risk requires time in the market. Take a look at the chart below to illustrate why you shouldn't wait any longer to invest.

Reasons to Invest

Sometimes we need to be reminded why we invest. For example, instead of simply investing for your retirement, reframe this goal so that you're saving for a future of travel, dining, sailing - anything that gets you excited. Doing so will give you tangible and motivating reasons to invest for the long-term.

Stretch Your Investments

People are living longer, thus investment strategies must be reconsidered. If retirement is on the horizon, don't focus on the idea of retiring in the next three years. Instead think about how you'll survive the next 30 years on your nest egg. The solution: hold a portion of your portfolio in equities to reduce your chances of outliving your investments. This is the only way to keep up with inflation and ultimately avoid eroding your purchasing power.

Give It Time

Perhaps one of the hardest things to do is follow the long-term plan that was put in place with your advisor. You may not realize it, but your investment behaviour has more bearing on your investments than the market's temporary fluctuations so stick to the plan and give it time.

I hope these tips help. For more information on how to invest during times like these, please don't hesitate to give me a call. I would be glad to assist you.