Lessons for Long-TermInvestments

Stonegate Capital Advisors shares its top 5 tips for saving and investing for the future.

Avoid the “noise”

• The 24-hour news cycle has created a need for drama on every news

channel in order to keep people’s attention. When assessing the global market seven days a week, they can

turn what might have once been small blip on the radar and make it into a disaster piece. Jameson Van

Houten says people should keep focused while riding through the

turbulence caused by the breaking news alerts. Wait for selloffs,

corrections and bear markets to pass.

Liquidity is important

• As people approach retirement age, being able to quickly access their money

becomes more and more important. Medical emergencies, unforeseen home repairs and more could require them to

have to dip into their retirement investment accounts. Illiquid

investments may cause a problem in these times of need, says Jameson Van Houten; penalties and other fees could

take a big chunk out of a person’s investment if they draw money from

these “locked up” accounts.

Know when to rebalance a portfolio

• Novice investors may not understand that rebalancing their portfolio from time to

time is important depending on market activities. Holding onto certain types of investments at

the wrong time can be detrimental to one’s financial

situation.

Do not get attached to certain types of investments

• Success in one area can cause an investor to become biased against diversification. In the same regard,

an investor could also become biased to one type of investment

based on familiarity – it’s just what they’ve always done.

Unfortunately, says Jameson Van Houten, this makes a person’s entire portfolio more heavily

influenced by only a few investments.

Patience is the key

• Investing can be a scary venture at first, with markets fluctuating and businesses rising and falling.

Over time, investors should realize that the market

rebounds from downturns, and that their long-term goals of financial security are better

served by taking a deep breath and riding the wave.