Safe conservative investing is possible. Yes, investing in the markets can be risky but you can minimize the risk dramatically. And you need not be a retiree to want to invest conservatively.
Even if you are not a "conservative" investor you may still want to invest a portion of your portfolio conservatively to help balance or diversify your portfolio. This can be accomplished as quickly as you decide how much of your investment portfolio you want to be "conservatively" safe.
Safe, conservative investing may not make you super rich overnight, but safe investing will preserve your cash and grow your portfolio. And a conservative portfolio started when someone is in their 20's, 30's or even 40's can grow into a very large sum, creating substantial wealth and security.
The steps to a conservative portfolio are straightforward:
• How much of your cash should be considered safe & conservative?
• How will your investments be made?
o By yourself
o By using an Investment Advisor
o By following an investment newsletter
If you decide to use an Investment Advisor or Financial Planner, I suggest:
• Interview three or four to see if their investment philosophy meshes with yours and if your personalities are compatible.
• Discuss fees and commissions.
• Discuss goals and objectives
• Understand that most advisors will not accept clients with less than $100,000 - $250,000 and some want you to have a much larger portfolio.
If you decide to follow an investment newsletter, I suggest:
• Research newsletters; don't just go with the offers that drop into your mailbox.
• Examine their track records.
• Do they offer timely advice when there are sharp market movements?
• Can you use the newsletter for all types of conservative investments (stocks, ETFs and mutual funds)?
If you decide to manage your own investments, I suggest:
• Research and pick a software program that you can customize to work your way.
• Decide if you need current income from your investments or if the income will be automatically re-invested to help your portfolio grow further.
• Choose or assort your investment positions from:
o Dividend producing stocks, ETFs or funds
o Short to long-term bonds
o Stocks, ETFs or funds with minimal risk and long-term growth potential
• Be willing to adjust the positions in your portfolio on an occasional time frame, but to take a 30 minute look every week or every few weeks.
Safe, conservative investment requires a bit of discipline. You have to remember that you are investing for the long term and that a one-day drop in the markets is not reason to panic and sell, in contrast to a sustaining market decline which could be reason to re-examine your positions. But if your positions are all producing strong income and are the type to come back after a decline, then decide carefully whether or not to sell. When you do sell in a market downturn, a conservative attitude would move either to cash or into more bond positions.
The other discipline is to not allow yourself to be swayed into risky or aggressive investments. This may seem logical, but human, emotional beings that we are, we are all susceptible. Remember a safe, conservative portfolio or sub-portfolio of all your investments, may be part of the answer to securing your money for the future.
Author Raymond Dominick is the designer of Dynamic Investor Pro investment software for stocks, ETFs and mutual funds. He has been investing in the markets since his teenage years. An experienced business manager and journalist, he has been a registered investment advisor representative, also a professional photographer who loves escaping to the wonders of Glacier National Park in Montana.Even if you are not a "conservative" investor you may still want to invest a portion of your portfolio conservatively to help balance or diversify your portfolio. This can be accomplished as quickly as you decide how much of your investment portfolio you want to be "conservatively" safe.
Safe, conservative investing may not make you super rich overnight, but safe investing will preserve your cash and grow your portfolio. And a conservative portfolio started when someone is in their 20's, 30's or even 40's can grow into a very large sum, creating substantial wealth and security.
The steps to a conservative portfolio are straightforward:
• How much of your cash should be considered safe & conservative?
• How will your investments be made?
o By yourself
o By using an Investment Advisor
o By following an investment newsletter
If you decide to use an Investment Advisor or Financial Planner, I suggest:
• Interview three or four to see if their investment philosophy meshes with yours and if your personalities are compatible.
• Discuss fees and commissions.
• Discuss goals and objectives
• Understand that most advisors will not accept clients with less than $100,000 - $250,000 and some want you to have a much larger portfolio.
If you decide to follow an investment newsletter, I suggest:
• Research newsletters; don't just go with the offers that drop into your mailbox.
• Examine their track records.
• Do they offer timely advice when there are sharp market movements?
• Can you use the newsletter for all types of conservative investments (stocks, ETFs and mutual funds)?
If you decide to manage your own investments, I suggest:
• Research and pick a software program that you can customize to work your way.
• Decide if you need current income from your investments or if the income will be automatically re-invested to help your portfolio grow further.
• Choose or assort your investment positions from:
o Dividend producing stocks, ETFs or funds
o Short to long-term bonds
o Stocks, ETFs or funds with minimal risk and long-term growth potential
• Be willing to adjust the positions in your portfolio on an occasional time frame, but to take a 30 minute look every week or every few weeks.
Safe, conservative investment requires a bit of discipline. You have to remember that you are investing for the long term and that a one-day drop in the markets is not reason to panic and sell, in contrast to a sustaining market decline which could be reason to re-examine your positions. But if your positions are all producing strong income and are the type to come back after a decline, then decide carefully whether or not to sell. When you do sell in a market downturn, a conservative attitude would move either to cash or into more bond positions.
The other discipline is to not allow yourself to be swayed into risky or aggressive investments. This may seem logical, but human, emotional beings that we are, we are all susceptible. Remember a safe, conservative portfolio or sub-portfolio of all your investments, may be part of the answer to securing your money for the future.
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