By now you know that we preach the value of a financial plan. While it does serve the purpose of answering the question “Am I on Track?” it also helps create a blueprint for making wiser financial decisions. While in reality life rarely ever plays out exactly as planned, it does allow you to aim for something and avoid making spur of the moment decisions that are not wise.
Systematic investing – I just sold received an inheritance of $500,000. Instead of investing 100% immediately, we set up a plan to own short-term conservative investments and invest 1/8 of the inheritance each quarter for two years. This may help avoid investing all at the wrong time.
Systematic spending – I want to buy a vacation home in 10 years and it will cost $350,000. Over the next few years, we move out of growth investments and into conservative investments to make more cash available over time. This may help avoid selling growth investments at the wrong time.
Disclaimer: Alex Voorhees and Reston Wealth Management do not provide legal, accounting or tax advice. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified investment, tax or legal advisor. The opinions voiced in this article are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) or strategies may be appropriate for you, consult your financial advisor prior to investing. No strategy assures success or protects against loss. You should consider the investment objectives, risks, charges and expenses of any investment carefully before investing.