Investment Basics

Investment Basics Series: Summertime Learning for Year-Round Investing

Investment Basics

While summer isn’t officially over yet, once those big yellow school busses reappear, it’s hard to not consider it a wrap. Likewise, we’re ready to wrap our summer series of investment basics.

We hope that doesn’t mean you stop learning how to invest in ways that bring the greatest meaning to you and your family. After all, to circle back to the beginning, that is what investing is really all about.

To help you make the most of this summer’s series, here is a handy review and some key take-aways.

  1. Why Invest to Begin With?
    “It’s common for advisers and investors alike to rush into talking terminology and leveraging logistics, without first setting the all-important stage … your goals and your planning are where it should begin.”
  2. What Is an Asset Class?
    “Just as elements are essential to the make-up of the universe … asset classes are elemental to wealth management. Without asset class management, it’s too easy to become distracted by irrelevant events and emotional reaction when choosing your holdings.”
  3. What Is Asset Allocation?
    “Asset allocation is essential to replacing random speculation with individually planned investing.”
  4. What Is Asset Location?
    “While you may not know when you are missing out on effective asset location opportunities, the money you may be losing to unnecessary taxes can be very real.”
  5. What Are Market Risks?
    “Market risk can be your strongest ally and your most powerful foe. To optimize the opportunities and minimize the threats, it helps to understand the nature of the beast.”
  6. What Is Diversification?
    “To capture the spectrum of all that the markets have to offer, it’s important to diversify your investments into not just a lot of investments, but a lot of kinds of investments.”
  7. What Is Rebalancing?
    Deliberate rebalancing is one of the best ways we know of to more consistently buy low and sell high while staying on track toward your personal goals.”
  8. Stocks vs. Stock Funds
    “By investing in low-cost, evidence-based mutual funds, you can shift your time and energy from the granular details to the big picture.”
  9. Bonds vs. Bond Funds
    “Let go of selecting individual bonds and redirect the time saved on enjoying a satisfying lifestyle, this summer and year-round.”

We bring our series to a close by sharing one of our favorite Carl Richards illustrations, which we think speaks at least 1,000 words. Enough said.bgap

LAST CALL: Win a copy of Carl Richards’ new book, One-Page Financial Plan

As we mentioned in our Investment Basics introduction,  send us an e-mail with a question or comment about today’s post, and you’ll be entered in this week’s drawing for a copy of Carl Richards’ One Page Financial Plan. Your last chance to win!

url-1Sage Serendipity: Researchers using remote sensing and geophysical imaging technology have found what they think is a huge Neolithic ritual site under two miles from Stonehenge.  Excavation has not yet begun but from what the Beeb (BBC) says  it will be a massive find, not a Spinal Tap 18 inch stage mishap.


Sheri Iannetta Cupo, CFP®, Founding Partner (Retired) & Director
[email protected]

SAGEbroadview Wealth Management is a Fee Only firm offering ongoing financial planning and portfolio management, with tax planning woven carefully throughout our services. We work virtually across the country, with offices in Farmington, CT, Morristown, NJ, and Burlington, MA.