Vail Daily column: Five good reasons to create an investment strategy | VailDaily.com
YOUR AD HERE »

Vail Daily column: Five good reasons to create an investment strategy

Tina DeWitt, Charlie Wick and Kevin Brubeck
Financial Focus
Vail, CO Colorado

Some people buy investments here and there, now and then. Others open an Individual Retirement Account (IRA), put some money in it, and then forget about it. But this type of haphazard investment behavior can lead to haphazard results. On the other hand, you’ve got five good reasons for creating and following a comprehensive, long-term investment strategy.

• Reason No. 1: You want to enjoy a comfortable retirement lifestyle. For most people, building resources for retirement is the most powerful reason to invest. As a key part of your investment strategy, you’ll want to consider investments that have growth potential. The proportion of your portfolio devoted to these growth investments should be based on your individual risk tolerance and time horizon. And, as you move much closer to your actual retirement date, you may decide to shift some – but certainly not all – of your portfolio from growth-oriented vehicles to those investments that can provide a reliable income stream and incur less volatility.

• Reason No. 2: You need to stay ahead of inflation. Over the past few years, we’ve experienced relatively low inflation, but over time, even a low inflation rate can dramatically erode the value of your savings and investments. That’s why you may want to consider investments that provide the potential for rising income.



• Reason No. 3: You need to help manage the unexpected. You can’t predict what life will hold in store for you. To cope with unexpected costs, such as a major car repair or a new furnace, you’ll need to create an emergency fund containing six to 12 months’ worth of living expenses so that you won’t be forced to dip into your long-term investments. And to deal with other major uncertainties of life, you’ll need adequate life and disability insurance.

• Reason No. 4: You need resources for major life events. Your retirement may eventually require the bulk of your financial resources – but it’s not the only milestone for which you’ll need to save and invest. You may need a down payment on a house, or you may someday even want to purchase a vacation home. And if you have children or grandchildren, you may want to help them pay for college.



• Reason No. 5: You’ll want to keep in mind investment-related taxes. Taxes, like inflation, can eat into your investment returns. You’ll need to evaluate whether you can benefit from tax-advantaged investments and retirement accounts, such as traditional or Roth IRAs.

So there you have it: five good reasons to adhere to a unified investment strategy that’s tailored to your situation. This type of “blueprint” may not sound glamorous, and it’s certainly not a “get rich quick” formula, but it will help you stay on track toward your important financial goals.

This article was written by Edward Jones for use by your local Edward Jones financial adviser. Edward Jones and its associates and financial advisers do not provide tax or legal advice. Tina DeWitt, Charlie Wick and Kevin Brubeck are financial advisers with Edward Jones Investments. They can be reached in Edwards at 970-926-1728 or in Eagle at 970-328-4959 or 970-328-0361.


Support Local Journalism