This story on investing is sponsored by America First Credit Union – The member-owned, not-for-profit cooperative financial institution is the largest credit union in the state of Utah.
The DOW hit a record high this week, and it just keeps climbing. But investing based on the lifts and falls in the market can be a losing plan.
Investing Is About Time, Not Timing
Rex Rollo, CFO of America First Credit Union, believes that success for most investors doesn’t depend on those short term numbers. “Success in the market is more about time in the market than timing of the market. Consistent investments over time usually register the best results.”
Rex joined KSL News Radio’s Jeff Caplan to talk about this better strategy.
Instead of trying to time the market, base your investing on these three things
1- Market Fundamentals
Base your investments on market fundamentals. More than the ups and down of the market, this information will help guide your investing. Market fundamentals include things such as quarterly and annual financial reports, information on products, and even reported customer satisfaction. This is the information that tells you that you’re investing in a promising company or industry.
2- Your Risk Tolerance
The market puts your money at risk. How much risk is up to you. Many financial experts will advise you to decrease the risk as you age so you can protect your wealth for retirement. But only you can make these decisions.
3- Your Goals
Know why you’re investing this money. What do you hope to do with it in the future? Knowing this will guide your decisions. You may, for example, put some money in low risk because it’s earmarked for an important future expense. You may have other money you can put in high risk, and really shoot for the moon. Always have a goal in mind.