4 Steps for Successful Investing

4 Steps for Successful Investing

The issues and uncertainties investors face today may seem more challenging than those in the past. But basic, sound principles of successful investing still hold true.

Step 1: Start With a Plan

Build a flexible and durable plan that identifies your goals, such as creating a rainy-day fund, paying for a child’s college tuition, or financing a comfortable retirement. A financial advisor can help you identify your goals.

Step 2: Diversify Your Portfolio

Each of your financial goals may require different assets to meet certain timelines and other needs. A diversified portfolio may help minimize the impacts of volatility.

Step 3: Globalize Your Portfolio

Many investors gravitate toward easily recognizable U.S. companies. But we encourage investors to also focus on the long-term positive outlook for global economic growth.

Step 4: Keep Aligned to Your Plan

Stay on track by setting up regular maintenance of your plan. Often, this will involve rebalancing your portfolio in an effort to preserve your gains, take out risks beyond what you can tolerate and sustain the potential benefits of diversification.