By Natalie Litchfield, Financial Advisor, IFC Insurance
What have you done for me lately? While this is what most people look at when choosing an investment; it is actually the potential for growth that is more important. It grew twice as much as anything else last year you say? I think I will pass. Look for quality investments and buy them when they are are on sale or undervalued. Hard to find in this market environment but there are still some out there, keep looking.
How far is the fall? All investments include some risk. Whether it is the risk of loss, volatility or liquidity make sure you are aware and comfortable with the level of risk. Even cash has inflation risk. The risk that it won’t keep pace with inflation and will have less buying power in the future.
Oops, I didn’t see that coming. Focus on what you can control. You can’t control politics, new laws or the economy. But you can control how much you spend, save and the quality of the investments you hold.
Do you have that one friend or family member who always seem to have the good stock pick or investment idea that is sure to make millions? Remember this; the most successful investors made their money the long way, on a good quality, well diversified portfolio they held for the long-term.
Natalie Litchfield and her firm IFC are State Registered Investment Advisors. Past performance is no guarantee of future results. This is not a solicitation for the sale of securities.