As financial advisors, many times we are asked by clients what they should invest in. It’s not always an easy answer, because our answer to clients depends on many things. What you should invest in is personal to YOU, and should take into account your personal situation. However, one easy answer to ‘what should I invest in’, is to invest in your retirement.
Participate in your company’s retirement plan to the maximum allowed contribution each year.
Once you are on your way to maximizing your 401(K), the next investments you choose are part of a process that takes into account many factors.
Your tolerance to market risk will be determined through your completing a ‘risk tolerance profile’. Once we determine how you feel about losing value of your investments, and consider your timeline for needing to use your investments for specific purposes, we can start to discuss types of investments that fit your personal situation. We will also discuss affordability and fees associated with those investments, and the suggested allocation to specific fund sectors.
‘What should I invest in’ is always the beginning to a discussion about ‘You’. As we work together, periodic meetings should involve rebalancing, reassessing your investments, and discussing your goals and life events. If you want to know what you should invest in, let’s get together and start the discussion, or revisit what you’re currently invested in.