We’ve reached the end of another year — so it’s appropriate to reflect on the nature of time and how it affects us. And time certainly is a key element in the pursuit of your financial goals.
As an investor, time can be your greatest ally — when you invest for the long term, you could achieve an impressive cumulative growth in value, though there are no guarantees.
But you also need to consider time in other ways. For example, each year, you should check your progress toward various financial goals. If you’re falling behind, you may need to adjust your investment mix — or the goals themselves.
You also need to consider time in choosing your investment strategies. For longer-term goals, such as retirement, you’ll need to consider owning a reasonable number of growth-oriented investments. But for shorter-term goals, such as a wedding or vacation, you may want to look at investments with fewer fluctuations in value.
Here’s one more point to keep in mind: Over time, your risk tolerance may change, so you may need to adjust your investment approach and expectations.
When you invest, your biggest consideration may be time — so use it wisely.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Member SIPC.