5 smart-investing-strategies
TRANSCRIPT
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5 Smart Investing StrategiesInvestment Matters
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Financial Matters Series
You may be directed to third party sites which should not be viewed as an endorsement by us. We are not responsibilities for theinformation on third party sites.Securities Offered by Triad Advisors, Inc. Member FINRA/SIPC. Advisory Services offered through Wealth& Pension Services Group, Inc. Triad Advisors and Wealth & Pension Services Group are not affiliated entities.Important Risk &Disclosure Information
Wealth & Pension Services Group, Inc.
Wealth & Pension Services Group, Inc.
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Aboutmy
Background
Firm Commit
ment
The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult a professional for specific information regarding your individual situation.
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Five Smart Investing Strategies
Dont time the market
Asset allocation
Investment selection
Dollar-cost averaging
Rebalance your portfolio
Dont time the market
Asset allocation
Investment selection
Dollar-cost averaging
Rebalance your portfolio
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Fear, Greed & Market Timing
Buy Low
Sell HighBuy High
Sell Low
Best Approach
Common Approach
This illustration is a hypothetical example. It is not representative of any investment or combination of investments. Actual results will vary.
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Missing the Mark
Source: Yahoo! Finance, 2014Past performance does not guarantee future results. Individuals cannot invest directly in an index. Actual results will vary.
Number of Best Trading Days Missed
0
9.22%
5
7.00%
10
5.49%
20
3.02%
Standard & Poors 500 Average annual rate of return
(1994 to 2013)
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The Power of Asset Allocation
8.5% is determined byother factors
Asset Allocation
of performance is determined by...
Source: Brinson, Singer, and Beehower, Determinants of Portfolio Performance II: An Update. The Financial Analysts Journal, 1991. Past performance does not guarantee future results. Asset allocation is an approach to help manage investment risk. It does not eliminate the risk of loss if security prices decline.
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Diversification and asset allocation are approaches to help manage investment risk. They do not eliminate the risk of loss if security prices decline. Past performance does not guarantee future results. Actual results will vary.
CashEquivalents
Bonds
Speculative
StocksFixed Interest
Selecting Among Asset Classes
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The Investment Selection Process
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A Long-Term Look at Performance
Source: Thomson Reuters, 2015. Past performance does not guarantee future results. Actual results will vary.
$20,000
$70,000
$60,000
$10,000
$50,000
$40,000
1994
2014
1996
1995
1998
1997
2000
1999
2002
2001
2004
2003
2006
2005
2008
2007
2011
2012
2013
2010
2009
$30,000
$10,000 Original Investment
$65,475Stocks
$17,112Cash
$39,370Bonds
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Source: Thomson Reuters, 2015. Past performance does not guarantee future results. Actual results will vary.
The Scoreboard: Which Asset Class Had the Best Performance?
2005200620072008200920102011201220132014
3.00%4.86%4.74%1.80%0.16%0.13%0.08%0.07%0.05%0.03%
1.96%4.57%8.03%-4.01%18.39%9.12%8.27%9.96%-1.55%7.48%
4.89%15.80%5.49%-37.0%
26.46%15.07%2.12%
15.98%32.4%13.69%
StocksBondsCash
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Dollar-Cost Averaging in a Falling Market
This is a hypothetical example used for illustrative purposes only. It does not reflect the actual or expected performance of any invest-ment product. Dollar-cost averaging does not guarantee a profit nor protect against losses.
JanuaryFebruary
MarchAprilMay
June
$500$500$500$500$500$500
Total InvestedTotal Shares PurchasedAverage Price per ShareAverage Cost per Share
$30$29$28$27$26$25
16.717.217.918.519.220.0
$3,000109.5$27.50$27.39
SharePrice
SharesPurchasedInvested
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Dollar-Cost Averaging in a Rising Market
This is a hypothetical example used for illustrative purposes only. It does not reflect the actual or expected performance of any invest-ment product. Dollar-cost averaging does not guarantee a profit nor protect against losses.
JanuaryFebruary
MarchAprilMay
June
$500$500$500$500$500$500
Total InvestedTotal Shares PurchasedAverage Price per ShareAverage Cost per Share
$26$27$28$29$30$31
19.218.517.917.216.716.1
$3,000105.6
$28.50$28.40
SharePrice
SharesPurchasedInvested
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Source: Thomson Reuters, 2015. Past performance does not guarantee future results. Actual results will vary.
Balance Your Portfolio
Conservative
Cash60%
Bonds20%
Stocks20%
Initial Investment: $100,000Ending Value: $312,361
Best year: 15.3%Worst year: -12.9%Average year 6.1%
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Source: Thomson Reuters, 2015. Past performance does not guarantee future results. Actual results will vary.
AggressiveInitial Investment: $100,000Ending Value: $580,283
Best year: 29.6%Worst year: -32.9%Average year 10.6%
Balance YourPortfolioStocks80%Bonds10%Cash10%
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Rebalancing: Time And Intent
Source: Thomson Reuters, 2015.This is a hypothetical example used for illustrative purposes only. It is not representative of any specific investment or combination of investments. Past performance does not guarantee future results. Actual results will vary.
1994Bonds60%
Stocks 53%
Stocks40%
Bonds47%
2014
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Where Is Your Money?
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Elements of Sound Investing Strategies
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Financial Matters Series
You may be directed to third party sites which should not be viewed as an endorsement by us. We are not responsibilities for theinformation on third party sites.Securities Offered by Triad Advisors, Inc. Member FINRA/SIPC. Advisory Services offered throughWealth & Pension Services Group, Inc. Triad Advisors and Wealth & Pension Services Group are not affiliated entities.Important Risk& Disclosure Information
Wealth & Pension Services Group, Inc.