5 smart-investing-strategies

5 Smart Investing StrategiesInvestment Matters

Financial Matters Series

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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

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.

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)

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.

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

The Investment Selection Process

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


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

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

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


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%


AggressiveInitial Investment: $100,000Ending Value: $580,283

Best year: 29.6%Worst year: -32.9%Average year 10.6%

Balance YourPortfolioStocks80%Bonds10%Cash10%

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

Where Is Your Money?

Elements of Sound Investing Strategies

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


5 smart-investing-strategies

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