I’m a Financial Advisor: Here’s My Advice If You’re Not Sure What To Do With Your Investments
Written by
Cynthia Measom
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Amber Barkley
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If you’re unsure of what to do with your investments, you’re not alone. According to Ryan Jacobs, a financial advisor and the founder and managing partner of Jacobs Investment Management, LLC, in today’s volatile market, it’s not uncommon for investors to feel uncertain about their next move.
Whether you’re just starting to dabble in investments or you’re re-evaluating, here are five expert pieces of advice to help you make the right decisions for your portfolio.
Hire an Investment Advisor
Jacobs said the complexities of the financial world can be overwhelming, but an investment advisor can help.
“An investment advisor acts as a guide through the financial landscape, offering tailored advice that can make a significant difference in achieving long-term success,” he said. “Their expertise can help mitigate risks and identify opportunities you might not be aware of.”
Engage in Self-Learning
Jacobs said that if you prefer a hands-on approach, self-learning can be incredibly rewarding, because the internet is full of resources — from financial blogs and podcasts to online courses and webinars.
“Empowering yourself with knowledge is one of the best investments you can make,” he said. “The more you understand about the markets and how they work, the better equipped you’ll be to manage your investments effectively.”
Take an Investment Class
If you want a structured approach to learning, Jacobs recommended taking an investment class.
“These courses, often offered by community colleges, universities and online platforms, cover everything from basic investment principles to advanced strategies,” he said. “Taking an investment class can provide a solid foundation and clarify many of the misconceptions about investing. It’s a great way to build confidence and competence in managing your own portfolio.”
Dollar-Cost Average Into an Index Fund
Dollar-cost averaging into an index fund is one of the most straightforward, yet effective, strategies, according to Jacobs. He explained that it involves regularly investing a fixed amount of money into an index fund, regardless of market conditions. Additionally, over time, he said, this strategy can reduce the impact of volatility and lower the average cost per share.
“Dollar-cost averaging is a disciplined approach that helps investors stay committed to their investment plan,” said Jacobs. “It removes the emotional aspect of investing and ensures that you’re consistently building your portfolio, even during market downturns.”
Consider Your Risk Tolerance
Understanding your risk tolerance — the degree of variability in investment returns that you are willing to withstand — is crucial when making investment decisions, said Jacobs. Risk tolerance is influenced by your financial situation, investment goals and psychological comfort with risk.
“Take the time to assess how much risk you’re comfortable with and make sure your investment strategy aligns with that level,” he advised. “This will help you stay the course during market fluctuations.”
Final Thoughts
Jacobs said that while investing can be intimidating, especially during uncertain times, taking the aforementioned steps can help you navigate the financial markets with greater confidence and success.
“Remember,” he said, “the goal is to create a plan that works for you and helps you achieve your long-term financial goals.”
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