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This article brought to you courtesy of Matt Stutes, CFP, of Cornerstone Wealth Management, Canby Herald Financial Planning Expert.

Matt Stutes, CFP

Regardless of how the markets may perform, consider making the following part of your investment philosophy:

Diversification. Over time, certain asset classes may perform better than others. If your assets are mostly held in one kind of investment, you could be under pressure if it experiences some volatility. Asset allocation strategies are also used in portfolio management. When financial professionals ask you about your goals, time horizon, and tolerance for risk, they get a better idea about what asset classes may be appropriate for you.

Like diversification, asset allocation is an approach to help manage investment risk but does not eliminate risk.

Patience. Impatient investors can get too focused on the day-today and looking for short-term opportunities rather than longer-term potential. A patient investor understands that markets fluctuate and has built a portfolio based on their time horizon, risk tolerance, and goals. A short-term focus may add stress and anxiety to your life, leading to frustration with the investing process.

Consistency. Consistent investing does not protect against a loss in a declining market or guarantee a profit in a rising market. Consistent investing or dollar cost averaging is the process of investing a fixed amount of money in an investment vehicle at regular intervals, usually monthly, for an extended period regardless of price. The return and principal value of stock prices will fluctuate as market conditions change. Shares, when sold, may be worth more or less than their original cost.

Cornerstone Wealth Management

486 NW 2nd Avenue

Canby, OR 97013

503-266-7431

www.thecwmgroup.com

Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

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