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by Jameson Van HoutenStonegate Financial Group on Apr 28, 2014 in Jameson Van Houten, Jameson Van HoutenStonegate Financial
Group, Stonegate Financial
Group, Stonegate Financial
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Each year, many Americans struggle with their finances. With an economy that is on the rebound, it’s no surprise that many investors are weary about what’s next after the financial woes of the past several years. In order to avoid losses to your investments, Jameson Van Houtenof StonegateCapital Advisors recommends these tips in order to help keep your portfolio strong.
1. Considering global diversification. By selecting a variety of national companies, including growth and value as well as emerging emerging markets, and by also including choices in all ranges of large-cap, mid-cap and small-cap, you can create a well-rounded and strong portfolio.
2. Maintaining Diversity: Even though things in the economy are looking up for the better, there is still a lot of uncertainty as to how well the economy will do in the future. It may not be the time to take big risks. It’s important to have a variety of different types of stocks in order to decrease financial risk.
3. Avoiding long-term commitments: Avoiding long-term bonds at this point in the economic recovery is key. The economy is on the rise, which will eventually cause the Federal Reserve to raise interest rates. When this takes place, bond prices will once again begin to fall. By selecting short- or immediate-duration bond funds, it guarantees a smart choice for the long-term, says Jameson Van Houtenof StonegateCapital Advisors. This will help reduce impending increases in interest rate risks and maintain diversity, which is so important, within your portfolio.
4. Rebalancing as needed: Many people don’t bother to rebalance their portfolios, which can cause falling profits and a rise in the risk department. For those who do choose to rebalance do so like clockwork, and choose an annual date to go through and clean house. But this method can be very inefficient. It is better to work with someone who can help you rebalance on a percentage basis, adjusting for as little or as much as needed. This requires much more time and effort, but can result in big rewards for those willing to put forth the effort to get there.