Are your investments keeping you up at night? Many investors experience anxiety, especially during market upheavals. Your investments should be a tool that gives you peace of mind, not increased anxiety. If your finances are causing you stress, perhaps it’s time to take a step back and ask yourself, “Why do I feel this way about money?”
The Hidden Risks of “Safe” Investments
Investors often choose “safer” investments to reduce financial worries, but leaving all your money in a checking account can be a case of being “penny wise, but pound foolish.” While it seems safe, inflation silently erodes your savings, reducing your purchasing power over time. For example, prices of goods today are higher than five years ago. If your money doesn’t grow, you effectively lose value. It’s crucial to balance comfort with risk and consider investments that outpace inflation to preserve and grow your wealth.
Building Financial Resilience
Stress-free investing isn’t about eliminating risk entirely; it’s about managing it effectively. Think of it as tending to a garden—you can’t control the weather, but you can plant a variety of crops, tend to them with care, and seek advice from gardening experts to ensure a bountiful harvest. By diversifying your investments, understanding market dynamics, and consulting qualified advisors, you can build a resilient portfolio that weathers economic uncertainties and helps you sleep comfortably at night. Money should work for you, not control you. If you want to cultivate a financial garden that grows and thrives, no matter the season, start with small steps and don’t be shy about asking for help.
One Tactic to Lower Financial Stress
Studies show that successful investing relies more on diversification than on timing the market or finding the perfect investment. A diversified portfolio spreads out your risk, ensuring “all your eggs aren’t in one basket.” Savvy investors use tools like money managers and Exchange Traded Funds (ETFs) to achieve diversification. Start now by exploring these tools to help you feel more relaxed about your finances.
If managing your U.S. portfolios from Israel feels overwhelming, we’re here to help. Contact us at (02) 624-2788 or sign up for a consultation at profile-financial.com/call to see if we can help you lower your financial stress.
Douglas Goldstein, CFP® is the director of Profile Investment Services, Ltd. www.Profile-Financial.com. He is a licensed financial professional both in the U.S. and Israel. Call (02) 624-2788 for a consultation on how to set up your American assets to meet your financial goals. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of Portfolio Resources Group, Inc. or its affiliates. Neither PRG nor its affiliates give tax or legal advice.
Published December 17, 2024.