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5 smart-investing-strategies

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5 smart-investing-strategies every investor can follow

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5 smart-investing-strategies

  1. 1. 5 Smart Investing Strategies Investment Matters
  2. 2. Financial Matters SeriesFinancial Matters Series You may be directed to third party sites which should not be viewed as an endorsement by us. We are not responsibilities for the information on third party sites.Securities Offered by Triad Advisors, Inc. Member FINRA/SIPC. Advisory Services offered through Wealth & Pension Services Group, Inc. Triad Advisors and Wealth & Pension Services Group are not affiliated entities.Important Risk & Disclosure Information Wealth & Pension Services Group, Inc. Wealth & Pension Services Group, Inc.
  3. 3. About my • Background • Firm • Commitment The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult a professional for specific information regarding your individual situation.
  4. 4. Click to Play
  5. 5. Five Smart Investing Strategies Don’t time the market Asset allocation Investment selection Dollar-cost averaging Rebalance your portfolio Asset allocation Investment selection Dollar-cost averaging Rebalance your portfolio
  6. 6. Fear, Greed & Market Timing Buy Low Sell High BuyHigh Sell Low Best Approach Common Approach This illustration is a hypothetical example. It is not representative of any investment or combination of investments. Actual results will vary.
  7. 7. Missing the Mark Source: Yahoo! Finance, 2014 Past performance does not guarantee future results. Individuals cannot invest directly in an index. Actual results will vary. Number of Best Trading Days Missed 0 9.22% 5 7.00% 10 5.49% 20 3.02% Standard & Poor’s 500 Average annual rate of return (1994 to 2013)
  8. 8. The Power of Asset Allocation 8.5% is determined by other factors Asset Allocation of performance is determined by... Source: Brinson, Singer, and Beehower, “Determinants of Portfolio Performance II: An Update.” The Financial Analysts Journal, 1991. Past performance does not guarantee future results. Asset allocation is an approach to help manage investment risk. It does not eliminate the risk of loss if security prices decline.
  9. 9. Diversification and asset allocation are approaches to help manage investment risk. They do not eliminate the risk of loss if security prices decline. Past performance does not guarantee future results. Actual results will vary. Cash Equivalents Bonds Speculative StocksFixed Interest Selecting Among Asset Classes
  10. 10. The Investment Selection Process
  11. 11. A Long-Term Look at Performance Source: Thomson Reuters, 2015. Past performance does not guarantee future results. Actual results will vary. $20,000 $70,000 $60,000 $10,000 $50,000 $40,000 1994 2014 1996 1995 1998 1997 2000 1999 2002 2001 2004 2003 2006 2005 2008 2007 201120122013 2010 2009 $30,000 $10,000 Original Investment $65,475 Stocks $17,112 Cash $39,370 Bonds
  12. 12. Source: Thomson Reuters, 2015. Past performance does not guarantee future results. Actual results will vary. The Scoreboard: Which Asset Class Had the Best Performance? 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 3.00% 4.86% 4.74% 1.80% 0.16% 0.13% 0.08% 0.07% 0.05% 0.03% 1.96% 4.57% 8.03% -4.01% 18.39% 9.12% 8.27% 9.96% -1.55% 7.48% 4.89% 15.80% 5.49% -37.0% 26.46% 15.07% 2.12% 15.98% 32.4% 13.69% StocksBondsCash
  13. 13. Dollar-Cost Averaging in a Falling Market This is a hypothetical example used for illustrative purposes only. It does not reflect the actual or expected performance of any invest- ment product. Dollar-cost averaging does not guarantee a profit nor protect against losses. January February March April May June $500 $500 $500 $500 $500 $500 Total Invested Total Shares Purchased Average Price per Share Average Cost per Share $30 $29 $28 $27 $26 $25 16.7 17.2 17.9 18.5 19.2 20.0 $3,000 109.5 $27.50 $27.39 Share Price Shares PurchasedInvested
  14. 14. Dollar-Cost Averaging in a Rising Market This is a hypothetical example used for illustrative purposes only. It does not reflect the actual or expected performance of any invest- ment product. Dollar-cost averaging does not guarantee a profit nor protect against losses. January February March April May June $500 $500 $500 $500 $500 $500 Total Invested Total Shares Purchased Average Price per Share Average Cost per Share $26 $27 $28 $29 $30 $31 19.2 18.5 17.9 17.2 16.7 16.1 $3,000 105.6 $28.50 $28.40 Share Price Shares PurchasedInvested
  15. 15. Source: Thomson Reuters, 2015. Past performance does not guarantee future results. Actual results will vary. Balance Your Portfolio Conservative Cash 60% Bonds 20% Stocks 20% Initial Investment: $100,000 Ending Value: $312,361 Best year: 15.3% Worst year: -12.9% Average year 6.1%
  16. 16. Source: Thomson Reuters, 2015. Past performance does not guarantee future results. Actual results will vary. Aggressive Initial Investment: $100,000 Ending Value: $580,283 Best year: 29.6% Worst year: -32.9% Average year 10.6% Balance Your Portfolio Stocks 80% Bonds 10% Cash 10%
  17. 17. Rebalancing: Time And Intent Source: Thomson Reuters, 2015. This is a hypothetical example used for illustrative purposes only. It is not representative of any specific investment or combination of investments. Past performance does not guarantee future results. Actual results will vary. 1994 Bonds 60% Stocks 53% Stocks 40% Bonds 47% 2014
  18. 18. Where Is Your Money?
  19. 19. Elements of Sound Investing Strategies
  20. 20. Financial Matters SeriesFinancial Matters Series You may be directed to third party sites which should not be viewed as an endorsement by us. We are not responsibilities for the information on third party sites.Securities Offered by Triad Advisors, Inc. Member FINRA/SIPC. Advisory Services offered through Wealth & Pension Services Group, Inc. Triad Advisors and Wealth & Pension Services Group are not affiliated entities.Important Risk & Disclosure Information Wealth & Pension Services Group, Inc.

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