Investment Basics
“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.”
Diversification
Diversification is taking a mixture of stocks, bonds, real assets to create a portfolio that will on average yield higher returns with less risk.
Investing; Accumulation vs Distribution
According to the 2016 Dalbar Quantitative Analysis of Investor Behavior, the average equity investor over the past 30 years has gotten a return of 3.6% while the S&P 500 index has averaged 10.3% over the same period. Many of the investors we work with are not aware of the amount of risk they have inside their portfolio. When you require your portfolio to provide an income you need to live on, you have to change your outlook on the risk you are taking in that portfolio.
