10 Rules of the Road for Investing

DEWITT, Mich. - Sept. 16, 2020 - PRLog -- Your investment goals are as unique as the route you take to reach them. But regardless of your course, we believe these 10 "rules of the road" can help you get where you want to be.

1. Develop your strategy.

Your financial advisor gets to know you – your long-term goals, investment time frame and comfort level with risk – before recommending a strategy.

2. Understand risk.

As a rule, the higher the return potential, the more risk you'll have to accept. To determine what makes sense for you, your financial advisor will want to know:

3. Diversify for a solid foundation.

Your portfolio's foundation is your asset allocation, or how your investments are diversified among stocks, bonds, cash, international and other investments.

4. Stick with quality.

Of all the factors to consider when investing, Edward Jones believes quality is one of the most important. It's also one of the most overlooked.

5. Invest for the long term.

Despite stories of fortunes made on one or two trades, most successful individual investors make their money over time, not overnight. One of the biggest mistakes you can make is trying to "time" the markets.

6. Have realistic expectations.

First, you'll need to determine the return you're trying to achieve – which should be the return you need to reach your goals.

7. Maintain your balance.

Your portfolio's mix could drift from its initial objectives from time to time. You can rebalance to reduce areas where your investments are overweight or add to areas where they are underweight.

8. Prepare for the unexpected.

Unforeseen events could derail what you're working so hard to achieve. By preparing for the unexpected and building a strategy to address it, you'll be better positioned to handle the inevitable bumps along the way.

9. Focus on what you can control.

You can't control market fluctuations, the economy or the political environment. Instead, you should base your decisions on time-tested investment principles, which include:

• Diversifying your portfolio
• Owning quality investments
• Maintaining a long-term perspective

10. Review your strategy regularly.

The one constant you can expect is change. That's why it's so important that you and your financial advisor review your strategy on a regular basis.

Think of your financial advisor as your navigator on this journey. By working together to regularly review your strategy and make the adjustments you need, you can have a clearer picture of where you stand and what you need to do to help reach your goals.