Investment planning
A sound investment strategy is critical to helping your money grow and, ideally, outpace inflation. However, as simple as this may sound, investing can involve many complex factors.
Develop an investment strategy
If you're like many people, you may not have the time or the inclination to analyze how different investments or securities may fit into your portfolio. Working with a financial advisor can help you build your savings with investments that match your goals and tolerance for risk.
An advisor can help you:
- Assess your financial situation. Create a clear picture of your current financial situation, including analyzing your investment timeframe and your risk tolerance.
- Understand investing options, such as dollar-cost averaging, to help you make decisions that are right for you.
- Apply diversification. Spread out your investments among different asset types to distribute and reduce risk. Diversification basically means, "don't put all of your eggs in one basket."
- Allocate your funds. Asset allocation is about spreading your investments among different asset classes, including stocks, bonds, cash and real estate. This also dilutes risk.
- Monitor your progress. Revisit your portfolio regularly to make sure your investments are still aligned with your current needs and future goals.
- Consider tax implications. Be aware of tax advantages as well as consequences so you can avoid paying unnecessary fees.
Clarify your investment goals
Before you invest your money, it's important to identify and prioritize your financial goals, assess your risk tolerance and understand your investment options. A financial advisor can help you sort through your options and invest appropriately. Some questions to consider:
- What needs and dreams are you saving for? Retirement, a home, education?
- When will you need the money you plan to invest now?
- What is your risk tolerance? Are you willing to invest in stocks that may rise and fall in value in the short term, but have the potential to deliver larger returns in the long run?1 Or would you feel better if your money was invested more conservatively?
- Do you understand how different investment vehicles (stocks, bonds, mutual funds, real estate, etc.) work? And the potential tax advantages of each?
How we can help your investments stay on track
Over time, your goals, dreams and risk tolerance may change. Factors outside of your control may also change. An Ameriprise financial advisor can help you revisit your investment strategy regularly, so you can stay in line with your long-term financial goals.
1The Financial Planning Association (FPA) and Ameriprise Value of Financial Planning Study, was conducted by Harris Interactive in June/July, 2008 among 3,022 adults. While market volatility was significant during the study period, subsequent financial developments, which may have affected attitudes and behaviors, had not yet occurred.
Ameriprise Financial cannot guarantee future financial results.
Ameriprise Financial and its representatives do not provide tax/legal advice. Consult with your tax advisor or attorney regarding specific tax issues.
Diversification helps you spread risk throughout your portfolio, so that investments that do poorly may be balanced by others that do relatively better. Dollar-cost averaging involves continuous investment in securities, regardless of fluctuating price levels. Investors should consider their ability to continue purchases through periods of low price levels. Diversification, asset allocation and dollar-cost averaging do not assure a profit or protect against loss in declining markets.
Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be available in all jurisdictions or to all clients.
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People with a comprehensive financial plan are twice as likely to feel in control and confident about their financial future, compared to those without paid, professional support.1