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Three criteria today’s investor must possess

July 01, 2023

It feels like the last couple of years have been extra challenging for today’s investors. When uncertainty in the markets appears standard, it’s an opportune time to hone in on a solid investment strategy and consider opportunities to diversify.

Here are a few tips to better weather daily volatility on your way to your long-term financial goals.

Look at the big picture

It is human to be uneasy when the markets are in decline, but having a longer-term perspective can often help you weather the storm. Instead of making reactive moves, examine your goals, current budget, and investigate historical market conditions to help you keep the current situation in perspective. Those who pull their money out of the markets during downturns can often miss the great opportunity to participate in the economic recovery that historically follows. Having a longer-term investment strategy is prudent–and a key benefit of working with an investment professional.

Be a good steward of your money

Good stewardship in finances means being intentional about how you deploy and spend your money. There are four key ways to improve in this area.

First, strive to understand money and its uses. Money is a tool and there are a variety of ways to deploy it to benefit your needs. Working with an investment professional can help you understand the impacts of different actions and, even more so, introduce investment opportunities you may not have found on your own. Examples of other asset classes that may have merit include: institutional real estate, private equity, private credit, and other investments that have reduced correlation to the public stock market.

Second, you want to identify your feelings about risk and return. Knowing your comfort level in this area is an important component to developing an investment plan that works for you.

Being a good steward of your money also means caring about its intended uses and having a detailed plan for how you will use it to benefit your lifestyle, family and causes that are important to you.

Finally, it’s important to have a basic understanding of the various levels and types of taxes for a variety of investments. Working with a professional can help you learn about techniques to best manage your money and reduce your tax burden, freeing up more for those uses that are important to you.

Engage an experienced professional

In today’s world, you have access to wealth professionals; use this resource. Financial professionals will typically keep investors on track no matter the daily noise of the 24/7/365 news cycle. Furthermore, a seasoned financial advisor is often aware of alternate investment opportunities to help diversify your assets, increasing the likelihood you will achieve your goals.

Working with an experienced professional can be one of the main ways to thrive in times of financial uncertainty. Find a professional who you feel comfortable working with, commit to the relationship, and you’ll be better prepared for what lies ahead.

If our Kensington team can be of assistance in helping you refine your investment strategy in 2023, let’s find time to connect.

Paul A. Gydosh, Jr. is founder of Kensington Wealth Partners, Ltd., a premier financial planning organization centrally based in Columbus, Ohio with clients in 26 states and major cities including Chicago, New York, Boston, Washington D.C. and Miami. He is also co-author of “Master Your Financial Success: Retirement and Legacy Secrets from Planning Professionals.” Paul regularly addresses industry, academia and client organizations on topics of current interest. As a leader and mentor in his field, Paul’s commitment to continuous improvement has enabled Kensington to serve the financial needs of some of the most successful individuals, families, and businesses over the last 35 years.

Paul A. Gydosh, Jr. is a registered representative of Lincoln Financial Advisors Corp. Securities and investment advisory services offered through Lincoln Financial Advisors Corp., a broker/dealer (member SIPC) and registered investment advisor. Insurance offered through Lincoln affiliates and other fine companies. Kensington Wealth Partners is not an affiliate of Lincoln Financial Advisors Corp. CRN-5591965-032723