SOMA Living December 2023

FINANCIAL FOCUS As another year comes to a close, let’s reflect on the role of time and its impact on our financial goals. Time is a crucial factor for investors, and it can be their greatest ally. Holding investments for the long term allows for impressive cumulative growth in value. By consistently adding shares to these investments, possibly through a dividend reinvestment plan, you can benefit from compounding growth. Although equity investments may experience market fluctuations, the longer you hold them, the better you can mitigate the effects of volatility. However, it’s essential to consider time in the following contexts: 1. Checking progress towards goals: When aiming for goals like saving for education or retirement, regularly assess your progress. If you’re falling behind, adjust your investment mix accordingly. 2. Choosing an appropriate strategy: Your investment strategy should align with the time needed to achieve each goal. For long-term goals, such as retirement, investing for growth with a reasonable percentage of equities is ideal. Short-term goals, like vacations or weddings, require investments with stable principal values, such as CDs and bonds. Remember, you can use different strategies simultaneously, combining growth vehicles for retirement savings while also investing in shorter-term instruments. Additionally, your risk tolerance may change over time, prompting adjustments to a more conservative approach as retirement approaches. However, maintaining some growth potential in your portfolio remains necessary to combat inflation. When investing, time is a crucial consideration, so use it wisely. TIME: A KEY ELEMENT OF INVESTING

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Gary T. Jones 973.821.4900 • g.jones@EdwardJones.com

With over 25 years of experience, I work with individuals and businesses to help you achieve your financial goals. As a longtime resident of SOMA, I am proud to serve the local community. To learn more about the content of this article or schedule an appointment to talk about your goals, please contact me in my Maplewood office.

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