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How a Solid Investment Methodology Helps Achieve Goals and Gains

A solid investment methodology helps investors achieve their goals and drive positive gains within their portfolio. Learn why it makes the difference.

Achieving solid investment gains helps investors achieve their investment goals.  The correlation between the two is obvious.  A solid investment methodology not only provides a plan of action, but also helps investors plan for the random variables involved with investing for the future. 

Having a solid investment methodology can be extremely helpful in reducing the portfolio volatility inherent in investing in the financial markets.  Whether the underlying risks stem from individual securities, currencies, or other factors, a solid investment methodology will not only increase the probability of positive gains, but also of achieving investment goals.

For investors of every type, having a solid plan in place for your investment strategy is sort of like building a house in that the investment methodology is the blueprint by which a solid foundation and structure are constructed.   As opposed to flying blind, putting the pieces in place in advance will improve the odds in the investor’s favor. 

“You are not going to know where you are going until you know where you have been.” 

There is an old saying: “You are not going to know where you are going until you know where you have been.”.  Investors burned in the past will tend to be more gun-shy and timid.  They will also tend to be more focused on their mistakes as opposed to finding a solution that prevents another such occurrence.  Instead of dwelling on past mistakes, or the next big thing in the stock market touted by financial commentators, investors should look to an investment methodology that takes your financial well-being into account.

Abiding by an investment methodology will not only improve positive results, but can also reduce volatility and mitigate risk throughout the portfolio.  Investment portfolios over the past several years have seen wild swings in value as a result of the events that have roiled financial markets in that time.  Between the financial crisis, “Too Big to Fail” and the more recent Brexit, the perception is that investors seem deluged with nothing but bad news.  But having a strong plan and investment philosophy in place can help assuage investor fears and mitigate any potential adverse effects from negative news.

Every Investor Has a Goal, Every Investor Needs Gains

Whether its retirement accumulation, immediate income, college education, saving for a home or even saving for a rainy day, every investor has a goal.  In order to achieve their investment goals, investors need gains from their investments.  But developing and implementing a plan to achieve all this is more often easier said than done.

In the realm of “goal-based investing”, investors are often without solid options to achieve their goals.  Although numerous products and services exist in the world of financial services, a proper action plan seldom does.  Investors often do not give thought to the notion of staying invested through every stock market condition, and often sell their investments at a loss when bad financial news comes out.  In most cases, they should remain invested, but possibly consider adapting their strategy accordingly.

A Plan for Many Market Conditions

Whether it is a bull market, a bear market, or even a wolf market where prices are volatile, investors need a plan.  But the plan needs to be prepared for a variety of market conditions.   Whether your time horizon is five years or fifty, or whether your benchmark is the S&P 500 or the school bills, you need a plan in place to help you achieve your investment goals.

4Thought Financial Group believes that the fiduciary responsibility of today’s Registered Investment Advisor must be taken one step further.  Through our unique investment methodology, our redefinition of the market cycle, and through the power of technology, we help investors not only achieve their goals but help them along in their journey in a transparent, cost-efficient manner.

Besides advising and educating other financial professionals, such as CPAs and financial advisors, we also educate and advise private clients.  Whether it is through exposure to traditional stock/bond investments, alternative investments, or access to institutional-class strategies that non high-net-worth investors would otherwise not have, we want our clients to have every option and opportunity at their disposal.  But for a complete portfolio management solution that helps you achieve gains and goals, it helps to have a roadmap to make it happen. 

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