As I wrote the title to this new blog series, I was immediately reminded of making mixtapes in high school with my favorite songs on them. I found some of these tapes in a box the other day, but I am sorry to say that I do not currently have a way to listen to them, so back in the box they went. Someday I will find one of the bright yellow Sony Walkman Sports on eBay… you know the one I am talking about!

So, let’s get back to some basics here. 

As a financial professional for my entire career, I eat, sleep, and breathe acronyms, financial verbiage, and the like. I talk about AUM or AUA and what the NER is on that mutual fund but not the ETF… you get the idea. Over dinner a few nights ago, my wife told me: 

"You should really get back to basics and write about things that are not so dense."

You know what? She’s right, but PLEASE do not tell her that or she will never let me forget it! So here is the first post in what is going to be a series of posts about the basics:

Investing for the long-term

Executive Summary:

• Dollar Cost Average into the market
• Do not try and time the market
• Focus on the long-term timeframe
• Adjust your portfolio as needed

You may have heard the term ‘Invest for the Long-Term’ and/or ‘Try to avoid the daily market noise.’ In theory, this is great advice and you absolutely should follow it, unless you are a day trader. However, we are all human and if you have any money invested in the stock market then any negative news cycle might make you think about your investments. Heck, even I cannot resist watching the market when I am trading to try and find the absolute best time to do it, but you know what? With a long-enough timeframe, it simply is more effort than it is worth. If your investment time horizon (future BTB post) is long enough, then simply being IN the market is better than trying to get that share of XYZ Corp for $1 less than it is trading now.

When MPWM is building out a portfolio from cash, and once an asset allocation (future BTB blog post) has been agreed upon, I start to dollar cost average (future BTB post) into the market. Consistency is the key here, as the market can swing up and down over a period of 4-6 weeks, so we come up with a plan to invest in tranches, or waves over time. Dollar cost averaging allows you to purchase more shares when the prices move lower and fewer when the prices move higher.

Summary

If your investment time frame is long enough and you can shift your mindset to focus on the long-term results of your portfolio, market volatility just becomes short-term noise. Let your financial goals and your investment time horizon dictate how much exposure and concern in the market you have.

As always, if you have any questions about how your portfolio is invested call me and let’s set up a time to discuss it. To help further the conversation I am able to process a full portfolio review to determine your overall asset allocation and exposure, complimentary of course.

Let your financial goals and your investment time horizon dictate how much exposure and concern in the market you have.

If you are not having frequent conversations with your wealth or investment advisor about market strategies, investment management, or financial planning opportunities, you should be, especially in a market like this!  Momentum Private Wealth Management  specializes in Wealth Management as well as Comprehensive Financial Planning. Feel free to reach out to Austin directly at 512.416.8085 or austin@momentumpwm.com. You can also find out more information about MPWM at: www.momentumpwm.com .

You can also read more about Austin on his  LinkedIn Page ,  CFP® Professional Certificate Page   or on his  XY Planning Network Profile page. ​

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