Investors are always in search of special techniques they can use to maximize their returns and save more for retirement. And who can blame them? A person’s retirement savings represents years of hard work as well as their hopes and dreams for the future.
One common misconception is that investors can somehow save more by strategically timing the market to buy or sell at opportune moments.
Unfortunately, this is a dangerous and risky notion that sets investors up for significant losses. Financial and historical research has shown not only that people cannot time the market, but that they consistently do the opposite of what they should due to emotional whims. This essentially leads to a pattern of “buying high and selling low”.
Renowned economist Burt Malkiel has never, in 50 years of financial experience, found someone who can time the market.
The only tried-and-true “secret” to investing is to remove your emotions from the decision making process. One way to do this is by rebalancing your investment portfolio at regular intervals, which reallocates assets to predetermined levels. Research has shown this reduces risk and maximizes returns by taking emotions out of the equation.
That’s why we rebalance all of our portfolios automatically throughout the year — it saves work for our clients and improves their returns over time.
Regular rebalancing isn’t the only technique we use, either. We also employ a number of proven, industry best practices to diversify your investments, minimize fees, and help you save more for retirement. If you’d like to learn more about our strategy, click here to signup for our e-mail list. If you’re ready to speak to one of our financial advisors to learn more, click here to schedule a no-obligation consultation.