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Navigating through the investment world

FALLBROOK – July 24 was Amelia Earhart Day. July 24 was chosen because it’s the birthday of perhaps the most famous female aviator in history. Earhart’s story ended tragically when she became lost in the Pacific Ocean in 1937 on her voyage around the world, but she is still celebrated for her bravery and pioneer spirit.

As an investor, it is possible to learn a lot from Earhart’s career. Here are a few lessons to consider:

• Plan ahead. After a length analysis of Earhart’s final flight, decades after it occurred, a noted aviation expert came to one succinct conclusion: “poor planning, worse execution.” Yet on her successful flights, Earhart was known to have produced, and followed, detailed flight plans. As an investor, one must plan his or her journey toward their financial goals. First, one must identify his or her destination, such as a comfortable retirement. Next, one must create a map to reach the goal, in the form of a detailed financial strategy based on an investment portfolio tailored to their risk tolerance and time horizon. And along the way, one must chart their progress via regular reviews of the chosen investments’ performance.

• Use the right tools. If one doesn’t fully understand the tools, which are the investments they need to help achieve goals, they may run into difficulties. One must know exactly what they are investing in and why they have chosen those specific investments. Without this information, it’s possible to end up with investments that are either too risky for comfort or too conservative for the goal.

• Keep the goal in mind. As an investor, one needs a clear view of what they want to accomplish in the long term and they need to avoid having their vision clouded over by short-term events such as price drops and recessions.

• Put sufficient power in a portfolio. One needs to consider whether they have the right mix of growth-and-income oriented vehicles to power them toward saving for college money for their kids, a comfortable retirement and other goals.

While most will probably never try to circumnavigate the globe in a small plane, it is possible to emulate the best features of Amelia Earhart, such as courage, perseverance, and faith in the future. When taking steps to help focus on what one can control, their investment journey can be rewarding.

Questions may be directed to local Edward Jones Financial Advisors, including Russ Jacobs, 1099 S. Mission Road, Fallbrook, (760) 731-7467.


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