All too often I am approached by my clients with questions around how I handle my personal finances—as if I’m harboring a secret formula for success. The truth about money management is that many people regularly feel they’re not quite getting it right, despite their efforts to stay updated on the latest strategies and market trends.
However, as a financial advisor specializing in wealth management strategies, I want to demystify this process. The way I manage my own finances isn’t all that different from how I guide my clients. It all begins with a solid foundation, focusing on the fundamentals.
1. Research, Research, Research
The foundation of my investment strategy begins through the process of research. I dedicate countless hours to understanding the companies and financial instruments I’m considering for my portfolio. My systematic approach involves studying financial statements, market trends, and industry analyses. Research allows me to make informed decisions while reducing the likelihood of impulsive choices.
2. Emotion-Free Investing
Many of us are aware of the impact emotions can play on our investment decisions. Emotion-based choices can cloud judgment and lead to impulsive and reactionary behavior. Given this fact, it’s crucial to detach emotions from your investment choices. And though it’s tempting to invest in companies you may admire (like Apple, Tesla, Meta, or Amazon), it’s equally important to wait for the right time to buy. Patience and discipline are the keys to avoiding overpaying for assets.
3. Focus on the Long Term
Short-term market fluctuations can be unnerving to even the most seasoned investor, but I’ve learned to keep my eye on the long-term goal. If my initial research supports a solid investment, I don’t let short-term pullbacks shake my confidence. A long-term perspective helps weather market volatility while reducing the urge to react impulsively.
4. Patience Is a Virtue
Market swings are inevitable, but overreacting to them can be a threat to your financial stability. Part of my approach is to train my mind to remain calm while avoiding hasty decisions in response to market fluctuations and volatility. Reminding myself to be patient in turbulent times allows me to stay the course while reaping the rewards from the overall long-term growth potential of my portfolio.
5. Know Your Risk Tolerance
We all have different levels of risk we’re willing to take with our money, and it’s important to assess where you fall on the spectrum. Investment risks can be complex, often leading people to act against their best interests. Taking the time to assess your comfort level with market fluctuations can help accurately align your portfolio with your true level of risk. This approach can reduce sleepless nights and panic selling during turbulent economic times.
A Strategy for Success
Mastering money management and investment strategies can be an easy process with the right support. Here at GLH&C Financial Services, our mission is to empower our clients with the knowledge and resources they need to approach their financial plans with confidence. In fact, that’s why I became a financial advisor in the first place.
If you’re eager to dive deeper into our investment philosophy and how it can enhance your portfolio, please don’t hesitate to get in touch with our office. Email me at firstname.lastname@example.org or give me a call at 916-967-3208 to see if I’m the right fit to help you pursue your ideal financial future.
James Callens is a financial advisor at GLH&C Financial Services, a full-service, comprehensive wealth management firm. Jim has over 30 years of experience in the financial industry and uses his extensive resources and knowledge to help his clients experience simplicity and clarity in their financial lives. Jim spent more than 20 years working for GE Financial Advisors, both in its insurance services department and as a regional manager and financial advisor. He took part in GE’s Six Sigma Quality Training program and completed the National Association of Life Underwriter’s four-year LUTCF course. Jim also earned his certificate in financial planning from the University of California at Davis. In 2011, Jim combined his own firm, Callens Financial Group, with GLH Financial Services, creating GLH&C Financial Services, so he could provide even more value to his clients.
Jim lives in Folsom, California, with his wife, Melissa, and his four children, Jacob, Kristen, Grant, and Andrew. Together, they enjoy outdoor activities like kayaking, bicycling, and vacationing at Lake Tahoe. To learn more about Jim, connect with him on LinkedIn.