Buying low and selling high are much easier said than done because we are naturally more excited to purchase investments in rising markets but when markets fall we tend to worry and sometimes sell at or near lows.
Our pension style portfolios take this responsibilty off of your shoulders and help you navigate through market ups and downs. Here are two more financial strategies that can also help investors achieve more optimal results:
- To buy low during your accumulation (saving) stage of investing you can a) set up a disciplined plan of automatic purchases which buys investments when they are “on sale” and b) you can also practice the discipline of investing additional lump sums after markets have already declined.
- To sell high during your retirement (spending) stage of investing you can rebalancing your portfolio to smooth out your returns over time as you sell your investments.
Logically, portfolios will recover from down markets and reach new highs much more quickly when additional investments are purchased during market declines. Rebalancing the gains in portfolios made during the accumulation stage can reduce the impact of downturns during retirement.
Call us to discuss how to incorporate these “buy low” and “sell high” financial strategies in your portfolio.
Your CommonWealth Team.
