Feb 07

The Questions You Should Be Asking

by Geoff Wells

The NY Times blog author Carl Richards hits the nail on the head when he highlights how emotions are once again taking over media and investor behavior as the stock market presses higher and higher. The question being asked is  “Should we buy or should we sell?”  as many rush into the market at its recent highs. He goes on to say the real question investors should ask themselves is “How can we avoid this common behavioral mistake in the future

In keeping with our philosophy at Rockbridge Investment Management he concludes that we can avoid this mistake by having a written investment plan that includes:

  1. Why are you investing this money in the first place? What are your goals?
  2. How much do you need in cash, bonds and stocks to give you the best chance of meeting those goals while taking the least amount of risk?
  3. What actual investments will you buy to populate that plan and why? Make sure you address issues like diversification and expenses.
  4. How often will you revisit this plan to make sure you’re doing what you said you would do and to make changes to your investments to get them back in line with what you said in number 2?
Here at Rockbridge Investment Management, we feel having a written plan and answering these questions is indeed the starting point for successful long term investing.
The full article can be found here:  http://bucks.blogs.nytimes.com/2013/02/04/the-question-you-should-be-asking-about-the-stock-market/


About the Author

Geoff Wells is a Certified Financial Planner at Rockbridge Investment Management. “My interest in financial planning grew from assisting friends and coworkers with their retirement plans. Over time, I developed a knack for simplifying overly complex financial topics. After several years into my aerospace career, I knew that helping people with their personal finances was my professional calling. I feel extremely fortunate to have joined Rockbridge with its fee-only advisory model and remarkable team approach to financial planning.” Geoff is a graduate of the CERTIFIED FINANCIAL PLANNER™ Certification, Ohio State University Finance (M.S.) and MBA, Kelley School of Business, Indiana University, with a Mechanical Engineering (B.S.), University at Buffalo.
Learn more and/or Contact Geoff

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