Investment Tips

Helpful tips to keep in mind when putting your money to work

Develop an investment strategy.
A sound investment strategy should account for your time horizon for when you plan to use the money and the level of risk you are willing to take. Having a solid game plan will help investors avoid making emotional decisions based on short-term swings in the market.

Invest early and often.
There may be a misconception that you need a large lump-sum to start investing, but setting the habit of saving a set amount each month will accumulate faster than you think. Keep in mind that your earliest invested dollars will have the longest time to compound and grow.

No matter how much you believe in a particular company or individual investment, putting all your money into one idea can be catastrophic. Concentration risks go beyond just individual stocks. For instance, you could be too concentrated in one sector, such as technology. In that case, your investment success hinges entirely on the success or failure of only one part of the overall market. This risk can be mitigated by investing in different companies, sectors, and types of investments so that the underperformance of a particular investment does not necessarily spell bad news for your entire portfolio.

Look outside of employer retirement plans.
Taking advantage of employer matches and tax-deferral in accounts such as 401(k)s often makes very good financial sense. However, these plans are not a one-size-fits-all solution for achieving your financial goals. Contribution limits may prevent you from saving enough for retirement, and limitations on access to the funds make them a poor solution for more intermediate-term goals that you may be saving for.

Review investments regularly.
Regular reviews help investors ensure that they are on track to meet their goals, and that the investments still align with their objectives.

Doug Castle is a Certified Financial Professional helping people make the most of their resources to achieve their financial goals.

Castle Financial Strategies is not a registered broker/dealer and is independent of Raymond James Financial Services. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, and CFP® in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

2952 Technology Blvd. W, Ste. 201, Bozeman, MT 59718, (406) 613-7557

Almost everyone has a need to set aside money for the future, and with inflation chipping away at the value of our dollars there is also a need to seek growth on the money saved. Still, investing your hard-earned dollars can be daunting, especially if you are just getting started.

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