Staying the course when it comes to investing isn’t easy for investors, especially when there are always market ups and downs and when there’s constantly so much happening in the world.

💰 Q1. Will I stay the course?

Investing and developing an investment plan is key

By looking at how markets have performed over time, we can put the current market situation into context and appreciate how are investments can grow over the long-term.

.

💡 Q 2. What is the right plan for me?

.
We can’t control how markets behave, but by setting a clear plan, diversifying across multiple asset classes, and minimizing costs, we can stay in control of what matters: investing in a long-term investment strategy.

The value of time when investing.

As this 2023 Vanguard index chart below shows, while markets do fluctuate, asset values have steadily increased over the last 30 years.

It’s the long-term story that really counts.

Short-term market events tend to grab headlines, but for investors it’s the long-term trend you should focus on. When it comes to investing, time in the market is the key. And, when unexpected global events take place– whether it’s a pandemic, a banking crisis or a stock or tech crash – it’s easy to react emotionally to market movements. That’s where investing in a financial plan and having a trusted adviser to help you navigate through the journey is invaluable.

Investing emotions

Allowing emotions to drive your investment decisions – be it over confidence in the face of rising markets or fear in the face of falling markets– rarely serves us well.

And because markets are unpredictable, trying to time the markets means you must get two important decisions, right: win to get out and win to get back in. Get either wrong, and you risk having to pay a higher price to re-enter the market as well as miss out on the growth from any market recovery.

💰 Q 3. What makes a difference?

Diversify your portfolio

Historical market returns show that those who ignore the emotional swirl of short-term market conditions and focus on the long-term are rewarded for their patience and discipline.

The index chart below illustrates the benefit of diversifying your investments to help reduce volatility and smooth out returns over time.

Diversification often starts by investing across different asset classes common, but it also includes diversifying, broadly within each asset class by investing in a range of different companies, industries and even countries.

While this strategy doesn’t protect your portfolio against the possibility of negative returns, it can reduce your potential losses if the market does fall.

.

Q4. Investing costs?

.

💰 Keeping costs low.

The good news for investors is that your investment returns compound over time. The bad news is that so do your costs.

Investing costs remain one of the most important factors that determine investment outcomes, and seemingly small differences in cost can add up to a lot over your investing life. Research suggests low-cost funds tend to deliver better returns than high cost funds over time, so it pays to compare how different investment products stack up when it comes to fees and other investing expenses.

At FMG Wealth Strategists we regularly review our clients funds for ways to reduce costs and give them as investors the best chance of investment success. Minimizing the costs involved in investing helps them to build more wealth and achieve their investment goals.

💡 That’s why staying the course is such a timeless lesson.

No matter what happens it’s important to stick to your program and investment goals, because picking winners is harder than you think.

💡 When deciding where to invest, it’s important to understand that the best and worst performing asset classes will often vary each year.

The table above shows the performance of various asset classes over the past 30 years. Each class has experience years of best performance and worst performance with no clear pattern, therefore making it impossible to determine which asset class will be in next year‘s winner.

This demonstrates the importance of having a diversified mix of investments across multiple asset classes to smooth out returns over time.

Q5. Who can help me succeed?

If you are looking for best chance of investment success and minimizing the costs involved in investing to build more wealth and achieve your investment goals, or if you need more information or help to implement any of these strategies, contact us today on 08 7111 0022 or book a chat to see how we can best help you here

Arthur Panagis
Author, Founder, Wealth Coach and Financial Strategist

B.Bus (Accountant)
Grad Dip (Financial Planning)
Professional Certificate in Self Managed Super Funds
ASX Listed Equities Accreditation
Tax (financial) Advisor

REMEMBER, action is power!

💪 We want to make the rest of your life the best of your life.

P.S.

Subscribe to our Weekly Tips here

and

– – DOWNLOAD OUR APP TO HELP YOU BUILD YOUR WEALTH!

–

iOS

Google store

Enjoy!

– Head Office –
Suite 2, 148 Greehill Rd,
PARKSIDE SA 5063
Ph – 08 7111 0022
Email – info@fmgws.com.au

<= SHARE THIS STORY

Disclaimer: This article is factual information only. It is not intended to imply any recommendation about any financial product(s) or to constitute tax advice. The information in the article is reliable at the time of distribution, but may not be complete or accurate in the future.