Consider these four ideas for managing your investment objectives in the year ahead.
Courtesy Dobbs Wealth Management
- Hold the Right Amount of Cash
“The pandemic showed us the importance of an emergency savings account––I call it the sleep-better-at-night-fund,” says Juston J. Dobbs, MBA, CDFA®, CFP®, Managing Director – Investments, at Dobbs Wealth Management Group of Wells Fargo Advisors in Sherman. You want enough cash to meet short-term liquidity needs without over-allocating to cash and missing out on market opportunities.
- Selectively Increase Risk
The uneasy political environment, as well as the pandemic, caused some people to reduce their equity allocation. Now may be the time to selectively get back in line with appropriate equity exposure. “I believe in never taking more risk than you have to in order to achieve your goals, and often suggest easing back in versus jumping in,” Juston continues. “It’s important to review your plan periodically, considering whether to reduce your risk exposure, take some profits or diversify further.”
- Consider Exposure to Higher-Quality, Growth-Oriented Sectors
Consider cyclical sectors that may demonstrate more consistent performance as the U.S. economic recovery advances. “Quality is key,” says Juston. “There are a variety of components to assess. We’ll discuss options based on your situation and goals.”
- Be Proactive, Not Reactive
“One of the values I bring to clients is providing clear information for actions that align with investment goals,” says Juston. “By taking the emotions out of your investment decisions, I can help you consider actions that align with your plan and your life.” Life is busy, but your financial wellbeing should be a top priority. Contact Juston at 903-893-6682 to get started.
The use of the CDFA® designation does not permit Wells Fargo Advisors or its Financial Advisors to provide legal advice, nor is it meant to imply that the firm or its associates are acting as experts in this field. Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC, a registered broker-dealer and non-bank affiliate of Wells Fargo & Company. CAR 0121-02514.
Investment and Insurance Products: NOT FDIC Insured / NO Bank Guarantee / MAY Lose Value