Keys to Successful Investing

  • Plan well; then stick to the plan.  To succeed, it is essential to remember the multi-year time horizon and not react to short-term volatility, day-to-day or even quarter-to-quarter.  Mapping out goals and writing them down definitely helps investors stay on track and avoid the emotional swings of volatile markets.  The financial plan is a critical piece to successful wealth management.
  • Grow your capital by designing a portfolio on a risk-adjusted basis.  Seeking big returns is not so great when the risks aren’t justified.  Why take more risks if you don’t need to?
  • Control what you can:  product fees, tax efficiency, asset allocation, estate planning and design.  These areas can cost you big money if not managed properly, but they are all controllable!!  Don’t buy investments that cost too much, and be sure to diversify in a tax efficient manner using tax-deferred accounts, and asset location strategies.  With proper estate planning design, minimize the impact that the government can have on your heirs!
  • Guard against what you cannot control:  The last five years have reminded investors that investment returns are far from certain.  Diversify beyond stocks and bonds by using alternative strategies to enhance efficient frontier metrics.   For true diversification, look beyond the S&P 500 stocks, and consider a portfolio of: Global stocks, global bonds, real estate, gold, oil, commodities, currencies, etc.
  • Win by not losing:  Losses can be devastating and difficult to recover from.  Losing 50% takes a 100% return thereafter to get whole – a tall order to fill!   Diversify to minimize losses, and investors shouldn’t need to chase those big returns. 

For more information on this firm visit their website at or Call Carlos Carbonell at 305.669.2119