Guidance

RESOURCES TO HELP SHAPE YOUR FINANCIAL FUTURE

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Bradford M. Walker, CFP®
Senior Vice President
Wintrust Investments

In the world of immediate news comes immediate ideas which often lead to the need for immediate gratification...

People like Jim Cramer, from CNBC’s Mad Money, add excitement to hot investment picks, which can lead to impulsive purchases from otherwise level-headed investors. Think about it—should an investor really “bet” retirement dollars on tips from television, radio, or other “noise-media?” This is comparable to a casino where over 99% of visitors are losers, yet the excitement of one winner keeps people coming back. Similarly, the next time you hear about a great investment at a cocktail party or on the golf course, consider asking the question, “What were your previous nine investments?” You may end up hearing silence at the other end, as it’s likely the winning investment was preceded by several losing ones.

In lieu of a “pick and pray” strategy, a holistic, planning-based approach centered on you and your goals is significantly more likely to help than a random, hot tip. When evaluating the potential of an investment for inclusion in your portfolio, consider the following questions:

  • Is this information reliable? What are the potential risks and rewards?

  • Is it a good time to buy?  When do I sell it? How much?

  • Are there other investments that are similar, but more appropriate for my portfolio?

  • How does this fit in with my other investments?
  • Will it help me achieve my goals and fit within my financial timeframe?

News and information is available to everyone at anytime, which can be a positive or a negative; it all depends on the interpretation and financial behaviors of the investor. Over time, a clear plan with a disciplined approach and well-allocated assets has proven to be an effective means of achieving financial success. It is best to develop a strategy with a Financial Advisor who can interpret the vast information available and determine what is most relevant to each investor’s unique situation.