What’s on your financial wellness checklist?


Have you been concerned about the recent volatility in the markets? You are not alone. The good news is there are ways to keep your investment goals in check. Our Chief Investment Officer Matthew Saneholtz, CFA, CFP®, EA shared a few thoughts on building a portfolio that meets your financial goals. Matthew stated that in order to get started, the following three ideas should be addressed.

  1. Investment goal: It may sound simple but understand why you are investing in the first place.  Such as, are you investing for future retirement, buying a first home, or a college education fund for your children? Starting with outlining your goal for an investment is key for meeting your financial goals.
  2. Time Horizon:Depending on your goal, this may dictate your time horizon, or how long you are going to invest the funds to meet your needs. Time Horizon can dictate how aggressive your portfolio should be depending on how long you have until the goal is here. Generally, if you have a shorter time horizon, the less you may want to risk in the stock market or other volatile assets. On the other hand, if you have over five years to your goal, you may be able to stomach more ups and downs associated with more risky investments. 
  3. Know how you are currently positioned:As you have a goal and timeline to invest, you should know how you are currently positioned. Are you in a lot of cash and not really exposed to the stock market? Are you ultra-aggressive and only have stock market exposure? By regularly reviewing how your portfolio is invested, you can make sure your investments are aligned with your goals and time horizon. 

Too often, people are not invested correctly and miss out on years of returns. For example, Matthew has seen Roth IRA accounts be in cash during bull markets – the person did a great job of putting money into a retirement account but didn’t understand their positioning and that costs them significant market returns!   

If you would like to learn more or have any questions regarding your specific situation, please contact one of our advisors.

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