Picking the right investment strategy to meet your financial goals may seem as challenging as predicting which team will win the annual NCAA tournament. However, there are a few ways that picking an accurate March Madness bracket parallels a successful investing strategy. Here are a few tips to keep in mind:
Look for a solid coach. A good way to successfully create a bracket is by selecting teams that have a coach with a solid track record. This is also true for your investment strategy – set yourself up for success by working with a qualified, experienced investment advisor.
Think about your advisor as a coach. Look for someone with experience, who is going to inspire you and who can create a game plan for your unique needs. Like a good coach does for a team, your advisor should act in your best interest and be committed to putting in the time and energy to help you achieve your goals.
Don’t focus on one winner. A good strategy is to focus on more than picking the overall winner. For a successful bracket, you may need to pick the ultimate champion, but you have to make sure you pick other teams that win games along the way. The same is true with your investment strategy. You shouldn’t try to pick just one winning investment. You need a diverse portfolio that will help create a strong foundation aimed at meeting your tolerance for risk and investing goals.
Do your research. Randomly picking who will advance each round usually is not the best strategy. You may find more success by researching which teams are poised to do the best. The same holds true for your investment portfolio, do research to see what is compatible for you and your portfolio. Look for stable companies with consistent track records that may help demonstrate they can withstand the ups and the downs of the market. Just like putting in the time to practice often creates improvement for a basketball team, doing research may bring positive results to your investment strategy.
There will be some upsets. As a basketball fan and an investor, there are going to be upsets. Historically, we have seen surprises during March Madness where a lower-ranked team pulls off a surprise win against a top seed which makes for an exciting tournament. There will also be surprises in the market that affect investment success, however, this is a normal part of the investing cycle and shouldn’t take your eye away from the long-term goal. You must learn from losses, consider necessary adjustments and stay in the “game.” Just as good teams come back from upsets to do better the next year, if an investor stays the course, a well-constructed, diversified portfolio usually rebounds as well.
Don’t forget to have fun. We all like to root for our favorite team or alma mater and the same can be true for your investment strategy. Consider investing in some companies you use and like, but keep it within reason. While you may have a Cinderella story, you do not want to be overly optimistic and put all your eggs into one basket.
Remember, it’s very difficult to predict the winning teams and the same is true for picking an investment strategy. Investing requires discipline during both rewarding and challenging markets and working with a trusted advisor can help coach you through a smart approach. To have a conversation about creating a plan based on your tolerance for risk and investing goals, please contact us at 215-721-2112.
This article is for general information purposes only and is not intended to provide legal, tax, accounting or financial advice. The information in this article, and any opinions expressed therein, do not constitute a recommendation or an offer to buy or sell any security or financial instrument. Viewers should consult with their financial and/or legal professionals before making any financial decisions.
Girard is a marketing name used by Univest Financial Corporation to provide (1) investment and wealth management, fiduciary services and trust services through its subsidiary Univest Bank and Trust Co., (2) specific fiduciary and investment advisory services through Girard Advisory Services, LLC (3) securities products, insurance products and brokerage services through Girard Investment Services, LLC, a registered broker-dealer and member of FINRA and SIPC, and a licensed insurance agency, and (4) investment management and related products and services for Pennsylvania municipal entities through Girard Pension Services, LLC. Investment products and services are not FDIC insured, not a bank deposit, not bank guaranteed, not insured by any federal government agency and are subject to risks, including possible loss of any principal amount invested.