In the run up to the election, politicians lead the way in demonstrating how NOT to plan for the long term. Looking at their methods can be instructive for investors… as long as we do the opposite of what they do.
Another new party?
When I made aliya, I was amazed at how fractured Israel’s political arena was. Over the decades, I’ve dreamed about seeing a more consolidated legislature, yet with every new election, there are always new groups. What these candidates fail to realize is that a party that consists of a diversified list of individuals offers much more than an overly focused platform.
If you want to take a lesson from this when managing your securities, consider that it’s smart to have a portfolio that brings together different points of view. In one unified account, you can invest in stocks and bonds from around the world, bank deposits, real estate and commodity funds, and much more. Unlike Israeli political parties, you can coordinate these disparate parts so that they function in an integrated manner, with a common goal. Naturally, some portions of the allocation may have more influence depending on their relative importance in meeting the objective. At the end of the day, though, all the parts work together.
Win the race by sticking to your principles
Politicians often make deals with others with whom they have no common ground. All too often, these deals end in failure. In Israel’s case, these broken promises frequently… very frequently… end in new elections. Who benefits from this? Other than the companies that print the ballots, no one profits by having the citizens constantly returning to the polls. With your portfolio, choose your asset allocation, select quality investments, and then stick with it for the full term.
Make adjustments before the next election?
Speak to a financial professional to make sure that your investments are worth voting for by calling 02-624-2788.
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 March 11, 2021.