What Makes A Successful Portfolio
Salient points about building investment portfolios:
1) We cannot time the market because this is not how the Unit Trust game is played
2) Unit Trust is for retirement which allows significant time to lapse which in turn enables the market to stabilize over time to be able to deliver growth over the typical retirement period of more than 10-20 years.
Refusal to play the game with 4 key As will not yield a good outcome for investments:
1) Being clear of the AIM - retirement - the longer the goal, the more time you allow for significant growth.
2) Being clear of AGGRESSIVENESS - the more aggressive you want to be-the longer you have to stay invested.
3) ACTION - what is done during the “crisis” time of a fund determines the outcome of your results. Eg: The more you dollar cost in “bad” times, the better your portfolio performs over time. Asset allocation matters too.
4) ATTITUDE - the ability of one investor to make more profit than the other depends on how they view their investments. The negative investor might not prefer to take any good advice from someone who has successfully invested due to fear or other financial emotional intelligence issues. The optimistic investors always seek to learn from any “mistakes” made and grow stronger in any given chosen investment vehicle.
(The above is taken from the book In/Outcome- Manage your Income, Expect Great Financial Outcome by Amelia Hong the founder of FinAIMS)
Please connect with the Retirement Specialist from FinAIMS for more on how to retire confidently and comfortably.