When it Comes to Investment Strategies, Less is More

From Idaho to the East Coast, people cringe at the thought of mapping out an investment strategy. This may sound time consuming and extremely stressful. There are countless people who spend hours writing out detailed and lengthy investment plans, causing undue stress or frustration. There is good news for these individuals, though—this time and effort can be condensed.  

Surprisingly enough, when it comes to planning an investment strategy, less can actually be more. Managing expenses and investments is a great strategy in being fiscally responsible. This process may seem overwhelming or stressful, which is why meeting with a financial advisor can be extremely beneficial. 

When managing fiscal responsibilities, you can potentially avoid apprehension and confusion by keeping your investment strategy short, sweet and to the point. It has been said that an investment strategy should be just several bullet statements that can fit on a 4”x6” notecard. 

According to Morning Star, this notecard should include the investment portfolio’s overall goal, the guidelines the individual will follow in making investment decisions, and how the individual will control and uphold his or her portfolio. 

When meeting with a financial advisor in Idaho or elsewhere, it may be in the client’s best interest to share the notecard with their advisor so he or she has a tangible resource for understanding the client’s fiscal situation and goals. 

The “notecard strategy” can be extremely advantageous for investors from small towns in Idaho to some of the highest populated cities in the U.S. One reason for this is that you can use the goals and guidelines on the notecard as a reference when making financial decisions. If the investment being considered does not fit in with your investment strategy, then it is probably not an investment worth making. 

Another way that a financial advisor may see this strategy as a beneficial resource is that, as Morning Star puts it, their short and sweet plan can provide a “solid foundation for an investment policy statement.” 

Investors from Idaho to coastal states on the East Coast have found that this same technique can be helpful while making a retirement investment strategy or other financial plans. 

Simply put, even when it comes to the most complex and biggest investment priorities, less can be more. Investors will find relief in the fact that they can avoid stress by organizing their finances and investments in a simple and straightforward way.