A study conducted by Fidelity last year showed that women are more cautious with their investing compared to men. This more conservative mindset seems to make sense during weary economic periods, but remember: avoiding risk all together can jeopardize your ability to grow your savings.
A cautious approach has advantages, as well as disadvantages. How does one find the right balance and still achieve a risk-versus-reward strategy that is appropriate and less stressful? You can apply these four tips to your investing strategy to find the right conservative/risky balance:
Help dampen the impact of the market swing (up or down) with a well thought out and strategic investment mix.
2. Remember stocks offer the most growth potential.
U.S. stocks have consistently earned more than bonds over the long term, despite ups and downs.
3. Check In, but not too often.
Periodically check your investment mix and make changes when necessary. Make sure that you understand and you are comfortable with your stated risk/reward parameters.
4. Turn to a professional.
Work with a trusted advisor to help you understand the investments you own or any you need to add to your portfolio. Ask questions.
Following these four tips will help you find that investment target that is oriented toward long-term growth, yet does not make you nervous when the markets go up and down.