Monthly MFS Tip: Investing

photo-1459257831348-f0cdd359235f


Time and time again there is news that will create confusion as to what is the best course of action with new moneys sitting in cash ready to invest as well as portfolio positions. As an investor we are often looking for the top investments and best time to invest. As news flows, questions arise such as: Do I invest now or wait? Should I sell since there is so much bad news? Which will be the best sector in the near-term?

The reality is that a majority of news coverage focused on financial topics is often already priced into markets. Have you ever noticed that just when the information seems to be heading for the worst, markets have already started to move the other way? This is an occurrence that is seen frequently and should be used as a reminder that it is time in the markets, rather than market timing that will help you, as an investor, profit over the long-term.

Spreading out the risk through diversification, rebalancing on a regular basis and adding to your portfolio’s investments regularly over time, through dollar-cost averaging may be some of the best advice that you can ever get for your investments.  While pushing into an investment on the low can provide a very substantial reward, it is a difficult process to master. Even the best market timers have difficulty with this on a consistent basis.

Even though it may not be the sexiest investment plan, the truth is that creating a diversified portfolio that is aligned with your personal risk tolerance can be the simplest and most effective program to meet your goals. Ensuring that you stay the course while ignoring some of the intermittent noise can put you well ahead of the game over time.

Gain insight to more financial topics by visiting the Mission Financial Solutions (MFS) website. If you are a Compass Rose Health Plan member, you can access the MFS site through your Member Portal. To login, visit member.compassrosebenefits.com, or sign-up at www.compassrosebenefits.com/Register

The information on the MFS site is for educational purposes and the opinions and information is provided by the publisher (Horowitz & Company) and is not the opinion of Compass Rose Benefits Group or its affiliates.
Advertisements

2 thoughts on “Monthly MFS Tip: Investing

  1. I am a retiree. I currently receive less than one percent monthly interest on my Platinum Money Market Savings Account with Bank of America. I have $50K to invest in a short-term, safe investment tool which I can cash out if necessary. Any ideas???

    • Mr. Savoy,
      Thank you for comment. I reached out to financial advisor, Andrew Horowitz, and asked him for his opinion — please see below.

      He wrote: As the U.S. and global economies are continuing to recover from the massive hit they took between 2008-2009, there has been a very easy monetary policy throughout the world, taking interest rates to their lowest levels in history. That same CD or savings account that was yielding 5% is now paying an interest rate of less than 1%. In some cases bank savings accounts have a yield of less than 0.1%. The sad truth is that there are not many choices for someone looking for a safe and liquid investment — a bank savings account might be safest option.

      Due to your specific circumstances, we encourage you to call Andrew Horowitz, CFP directly at (954) 349-0800 so that he can provide you further direction.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s