Monopoly game board with car on the chance square

Photo by Karolina Grabowska

When you search the web for the best investment strategy, you’ll come across some “universal rules” that certainly aren’t universal and likely aren’t even true. This post is part of a series that looks into these investment “truths,” what they assume, and when they may or may not actually apply to you.

The Best Investment Strategy Myth

The first unspoken truth is that there’s only one “best investment strategy” that works for everyone. That one fails the fact check by a mile. Each person or family has their own unique goals, needs, time frames, and risk profiles. So, a one-size-fits-all approach that works well for some people could be a disaster for someone else. Since money is limited for most of us, experimenting with the wrong investment strategy could mean not reaching your goals.

Passive Investing

Take passive investing, for example. With this strategy, you’re supposed to buy a mix of investments and let it ride for decades, no matter what the market does. It’s become super popular lately and it has performed well since 2008. But has “Buy and Hold” been a success because it’s truly the best strategy, or was it just luck? The Fed has flooded the economy with cash since the Great Recession. That rising tide has floated all boats, helping most all investments go up including index ETF’s. That doesn’t make the best for other periods of time.

No One-Size-Fits-All Strategy

When it comes to managing your portfolio, there’s no one-size-fits-all solution. Our firm specializes in an active, tactical approach. It’s definitely not passive. We think it’s a great option and a better alternative to the Buy-and-Hold strategy used by most advisors, especially if you’re close to retirement. But hey, not all our financial planning clients use our tactical investment management services, and we’re good with that because for their plan works better with a different strategy.
Personal finance is just that – personal. Your situation is unique, so your strategies (both in personal finance and investments) should be special to you too.

This Wealth Health Curated Content was sent by email to our community days before we posted it to social media. Subscribe now to get future articles into your inbox before everybody else gets to see them.

Let's Stay Connected

Let's Stay Connected

Get access to our latest thoughts regarding Wealth Health: personal and business finance. We respect your inbox. You'll get an email once or twice a month. Promise!

Congrats! You're on the Wealth Health list.