Rules of the road for investing

DEWITT, Mich. - March 23, 2021 - 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 the 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:

• What is your comfort level with risk?
• How much risk are you able to take?
• How much risk do you need to take?

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.

6. Set 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. Then you can base your expectations on your asset allocation, the market environment, and your investment time frame.

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.