Buy and hold

Why Buy and Hold Strategy is Dangerous for Some Retirement Investors | S. 2 Episode 16

• Report rights infringement
• published: 18 Apr 2015
• views: 448

How do you invest your hard-earned money without making mistakes investors frequently make? CFP® Joe Anderson and CPA Al Clopine discuss common mistakes people make with their investments and how this affects their retirement. One of the biggest misconceptions is the “buy and hold” strategy, which is when someone buys a stock or mutual fund and then holds it for years or even decades. CFP® Bobby Gahvari joins Big Al to further discuss the dangers of the buy and hold strategy, then explains the importance of rebalancing your portfolio and better ways to invest your retirement assets. 1:26 “You don’t want to be timing the markets, you don’t want to just be buying and holding, and of course you need to be invested because you have a time frame to out pay inflation and taxes” 2:27 “Your cash flow plan doesn’t make any sense if you don’t have the right investments” 4:28 “The one big thing people miss the most is that they’re not diversified globally” 9:00 “Did you know that half of current retirees left the workforce unexpectedly due to health issues, disability or getting laid off?” *According to the Employee Research Benefit Institute 11:29 “As your goals, your needs, you risk changes, the portfolio should vary accordingly” 13:48 “Rebalancing is really important for investors because it maintains your risk return profile and your asset allocation. So through time, as your portfolio weights start to drift, you want to make sure you rebalance to those target weights and maintain your risk profile” 19:54 “If you have a rental property that you want to sell at a gain and you’ve got stock losses, you can net those two together, and this can be pretty powerful” 21:25 “Looking at fees and costs, even though it’s pretty difficult to find the transparency, people are getting a little bit more into this to figure out exactly what their costs are” Aired 4/18/15 If you live in southern California and would like to schedule a free assessment with one of our CFP® professionals, copy/paste this link in your search bar: https://purefinancial.com/lp/free-assessment/ Make sure to subscribe to our channel for more helpful tips and stay tuned for the next episode of “Your Money, Your Wealth.” Channels & show times: yourmoneyyourwealth.com http://purefinancial.com IMPORTANT DISCLOSURES: • Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, Inc. A Registered Investment Advisor. • Pure Financial Advisors Inc. does not offer tax or legal advice. Consult with their tax advisor or attorney regarding specific situations. • Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. • Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. • All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. • Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.