After watching the Alabama Crimson Tide roll to their third national championship in the past four years, it’s apparent that Coach Nick Saban’s approach is certainly working. His unwavering approach to the game and his ability to recruit the exact type of players to fit his scheme is producing results rarely seen at the Division I level. That consistency and dedication to philosophy has served Saban and the Crimson Tide faithful very well.
Gameplan for investing
[pullquote style=”right” quote=”dark”]…staying invested over the long haul provides substantial rewards over any time period.[/pullquote]
In many ways, investing is very similar. Investors need a gameplan and a catalog of the best funds in every asset class to pave the way for their financial success. Research and the help of a quality financial advisor can help in this process to ensure that your money and retirement goals are in funds that have proven themselves over the test of time. Oftentimes, investors move around from one fund to another or in some cases exit the market in turbulent times. However, history tells us that staying invested over the long haul provides substantial rewards over any time period. Consistency is the key.
Learning from past market meltdown’s
The market meltdown of 2008 and the early part of 2009 were a very difficult time and one even the most seasoned trader or investor struggled through. Staying true to objective and continuing to dollar cost average in times of fear are very difficult for most investors. It’s quite normal to panic and attempt to change the original gameplan set up by your advisor. At times, we feel better knowing we have taken risk off the table despite locking in losses. But depending on age and personal situation, it’s best to stay put and ride the volatility out with current allocations. It might take a while to get back to your basis, but history tells us long-term investors are rewarded for their patience.
Consistency is key
Stay consistent to your retirement goals. Avoid volatility by making sure your investments are in funds that have proven track records and that have performed above their peers in both down and up markets. There is more research and analysis available today than ever before. Just as Saban looks for players that fit his scheme and coaching methods, you need to find funds that fit your profile and objective as well as risk tolerance. As advisors, we can certainly help with that
Whether you’re a novice investor or seasoned pro, make sure you stay consistent with philosophy. Life changing moments occur for all of us that could change or alter our future plans and that’s ok. But until that happens, stay in the game and get the returns that long-term investors for years have earned.
Photo credit :Charles Atkeison µ