To thine own self be true ~ William Shakespeare

As an investor, these words are essential for a successful outcome. We see two different types of investor strategies in the stock market: those who like to see an active (changing) strategy used in their investments and those who like to see a passive (develop the model, buy and then hold) strategy. There are pros and cons to each strategy, and both can be successful. But people don’t typically spend enough time in understanding who they are as an investor and then building the right investment approach from those strategies.  

The investment approaches aren’t as simple as they sound, and can often be confusing. There is the passive (also know as Index) approach to investing, which is explained perfectly by William F. Sharpe: “Indexed investing is a strategy designed to match a market, not beat it.” And there are two different types of active investing approaches. The most common is simply known as active management (also called active investing), which refers to an investment strategy where the manager makes specific investments with the goal of beating its index. And the second is a market timing strategy, which can be either day trading (where you buy and sell an investment usually within the same day) or a longer term approach where you actively manage the investments but will move to cash if you feel the risks are getting too high. Getting confused yet? Most are.

A commonly asked question is: “When is the right time to invest?” But a far more important question to be asking is: “What’s the best strategy for me? Once you know who you are as an investor, you can put the right investment team and portfolio together and feel prepared to invest today.
What can also help you to stay the course with both approaches is a prepared financial plan. According to Money Magazine’s October 2012 edition, a recent study sponsored by the Consumer Federation of America showed that 50% of those with a prepared plan felt on track to meet their goals, vs. 32% of nonplanners.
 
With the holiday season quickly approaching, we would like to offer a gift: We will evaluate where you are today and help you build a personal financial plan for $500 (50% off our standard rate). We will answer your questions and help you define what who you are as an investor and develop a personal investment strategy that is right for you. All good things must come to an end, so sign up before it disappears - before 12/23/2012 to receive your special discount and be ready for 2013! 
With the holidays around the corner, we would like to wish you and your loved ones a Merry Holiday Season and a Very Happy & Healthy New Year.

We invite you to reach us @ info@bersonmoney.com

We offer a complimentary 30-minute phone consultation ...

and promise to use common sense when talking to you if at all possible



Investment advisory services are offered through Berson Money Management, a registered investment adviser offering advisory services in the State of California and in other jurisdictions where exempted. The contents of the blog are not to be copied, quoted, excerpted or distributed without express written permission of the firm. Any other use beyond its author's intent, distribution or copying of the contents of this e‐mail is strictly prohibited. Nothing in this document is intended as legal, accounting, or tax advice, and is for informational purposes only.