Determining an investment strategy that’s right for you |

Determining an investment strategy that’s right for you

Jeffrey Apps and Tracy Tutag

Whether you’re saving for your retirement, setting up a college funding program or putting money away for a dream vacation, determining an asset allocation mix that best suits your investment needs is as much a personal, as it is a technical endeavor. Some factors you should consider when choosing how you’ll invest include: your investment time horizon, your tolerance for risk, your ongoing financial situation and your personal investment experience. This understanding will help determine the types of investments you’ll select to work toward your specific goals and objectives. It’s not unusual to seek the advice of family and friends in your discussions and research about your investment possibilities. However, in order to keep the process objective and focused, you should seek the guidance of a financial professional who can provide information on the different investment categories and help you determine an investment strategy that best reflects your goals and intentions. After reviewing all the important factors, you can determine your personal asset allocation. Basically, there are three general categories: conservative, moderate or aggressive. The Conservative Investor:The conservative investor generally has a very low risk tolerance and seeks to protect principal investments from market risk by placing their money in fixed income and other secured investments. A major risk factor to the conservative investor for reaching long-term goals is inflation risk which could eat away at their savings’ purchasing power. Because prices have historically continued to rise over time, a dollar today will most likely not purchase the same number or amount of goods as it had in the past. To help maintain your spending power and standard of living, your investment returns will need to keep pace with the annual inflation rate.The Moderate Investor:The moderate investor has a somewhat higher tolerance for risk and is willing to sacrifice some of the safety of fixed-income investments to potentially achieve a more attractive long-term return. The moderate investor uses a diversified mix of fixed income and equity investments to potentially achieve these higher returns. The Aggressive Investor:The aggressive investor takes on an increased amount of risk for the potential of greater investment returns by primarily investing in equity-based investments. This aggressive approach is best suited to individuals with a substantial investment time horizon (ten years or more) who can withstand the losses of short-term market fluctuations and benefit from the equity markets’ long-term historical growth potential. It is most important for the aggressive investor to keep a long-term view of the markets and not to react prematurely to short-term market trends and downward market fluctuations. It takes a strong will and commitment to stick to your long-term investment objectives.No matter what type of investor you decide you are, perhaps the most important aspect of any successful investment strategy is getting started as soon as possible. Procrastination can be your worst enemy and, time, your biggest ally. Speak with a financial professional today who can help reap the benefits of a greater understanding of today’s investment marketplace. As you are reviewing information that will help you make investment decisions, please keep in mind that past performance is never a guarantee of future results.Jeffrey Apps and Tracy Tutag offer securities and investment advisory services through AXA Advisors, LLC (member NASD, SIPC) 1290 Avenue of the Americas, New York, NY 212-314-4600 and offers annuity and insurance products through an insurancebrokerage affiliate, AXA Network, LLC and its subsidiaries. They can be reached at 926.0601 or Vail, Colorado

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