Investment Strategies
After settling on your goals as an investor, you should consider which investment strategies will best help you achieve these goals. Suitable strategies can vary from person to person based upon age, income, assets, risk tolerance, family obligations, lifestyle and other factors. Don’t think of an investment strategy as “good” or “bad.” The key is to determine whether it’s the right strategy to help you accomplish your goals while also incorporating principles of asset allocation and diversification.
Investment strategies can be simple, such as putting a set percentage of your funds in diversified stock mutual funds and the rest in bond funds. Or they can be more complex, like an active strategy that attempts to increase returns by exploiting popular investment themes and making frequent trades or one that leans heavily on non-traditional (or “alternative”) investments such as real estate, precious metals or crypto assets.
A well thought out strategy should plan not just for your current nest egg but also how best to put savings from your future earnings to work (e.g., regular payroll deductions into a 401(k) plan).
Your preferred investment strategy will likely evolve over time as your circumstances, goals and obligations change. For example, a young, single person might be more open to an aggressive strategy that involves greater risk than someone nearing retirement.
Explore a range of investment strategies such as:
