The Finance Man

Should my advisor have principles to guide me in investing?  A resounding YES! 

I have discussed how we need principles, such as, “Treat others as you would have them treat you” to guide us in our investments.  The benefit of principles is they help us stay on the path we started.  In investing we have three principles we need to follow.  To recap last month, they are: faith in the future, patience and discipline.  

Now, lets discuss principles your ADVISOR must follow to properly guide your money and investments.  The first advisor principle is asset allocation; how much of your money is in stocks and how much is in bonds.  This is important because different investments may earn different rates of return.  The beauty and simplicity of asset allocation is it does not take a rocket scientist to realize if more of your assets have the potential to earn higher rates of return, your overall portfolio will have the potential to experience higher returns.  The next principle is diversification, or do not put all your eggs in one basket.  The portfolios I use spread your money over 600+ different companies in different industries, located around the world.  If your advisor has you in ten or so stocks, PLEASE come see me; if only one stock, (remember Enron went bankrupt) you could lose 100% of your money.  The last principle is systematic and annual rebalancing.  Since my space is limited, Google the phrase, “rebalancing your portfolio,” for a fuller explanation.  I provide my clients with automatic rebalancing so you do not have to worry about it.

If you do not have a Plan or an Advisor, one phone call to me and you can have both!  Until next time...God bless you!

If you have any questions, feel free to call me Robert E. Sutton (918) 698-1454 or email me at Robert.Sutton@Paronex.com.

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