Most people who decide to purchase stocks, bonds, mutual funds, or other investment vehicles do so understanding that there are risks associated with investing, but believing that the potential growth they may realize over time outweighs such risks. However, because there are no guarantees, investing assets can be a nerve-wracking experience – especially during periods of market turbulence.[i]
Taking a deliberate approach to financial asset management and working with a financial professional, rather than choosing to manage your own portfolio, may help you weather the ups and downs that come with investing.[ii] This, in turn, may make it easier to stay the course over the long run.
Understanding the Elements of Financial Asset Management
Financial asset management encompasses several concepts, including diversification, asset allocation, portfolio rebalancing, and the decisions that go into choosing and evaluating the performance of your investments.[iii] Let’s explore each of these individually:
Of course, nobody can predict with certainty what any particular investment product will do in the future. But, approaching financial asset management with a plan, and seeking guidance from your financial professional, may help ensure your investment portfolio is structured with your circumstances in mind.[viii] To learn more about financial asset management, talk to your investment professional.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
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