What's Your Potato?
Cultivating a Clear and Reasoned Investment Plan
March, 2007
by Kelly C. Ruggles
For South American natives, the potato played an important role in their lives and culture. Archaeological evidence points to the use of the potato in their religious ceremonies, medical treatments, expressions of art, and as an important food source.
For example, to preserve a potato for long periods of time, they exposed it to the night's freezing temperature conditions. The next morning, they stomped upon the potato to remove trapped moisture. They repeated the process for several days until it proved completely free of moisture. The method resulted in a food product that could be stored for many years. Thus, it was imperishable.
South American natives knew the appropriate process to preserve potatoes and they created specific methods for their survival. They developed strategies to perpetuate their future and kept with long term plans for the continuation of their people.
Ask yourself this question: What's your potato?
What do you depend on to cultivate your savings and investments? Are you keeping your fingers crossed and hoping for a better day or are you proactive with your allocation of assets and abide by precise strategies. Furthermore, do you pass along prudent advice to your family or do you exclude them in your planning for the future?
| What's YOUR Potato? What do you depend on to cultivate your savings and investments? What is your long term strategy for you and your family? |
Undoubtedly, amendments will be necessary as you achieve your goals and move forward, but the overriding theme of your long term plan should produce diligence and confidence.
Depending on your financial objectives, certain variables may affect your investment strategy such as the current equity market (both domestic and international) and the current fixed income market.
Growth oriented investors find the markets frequently subscribe to the relationship between supply and demand. For the purpose of this article, disregard for a moment information on company earnings and economic conditions. Focus on the perceived status of the overall equity market as buyers versus sellers. Depending on the nature of the two groups, does the market carry an offensive or defensive bias? With the assistance of your financial professional, a review of the current market environment will be time well spent.
Dividends and yields represent two important components for fixed income investors. With interest rates on the rise, fixed income investors may have several questions. Common questions include: "What term is best for my unique circumstances?" and "When should I expect the interest rate hikes to end?" It is natural to wonder where interest rates go from here and if short term or long term vehicles provide the best value. This is where your financial plan and financial professional offer constructive direction and advice.
©2007, Kelly C. Ruggles
Kelly C. Ruggles, President of American Reliance Group, Inc., is a registered investment advisor. Mr. Ruggles is the author of "The Financial Playbook" for Retirement.
Mr Ruggles does not intend to provide personalized investment advice through this publication and does not represent that the strategies or services discussed are suitable for any investor. Investors should consult with their financial advisors prior to making any investment decisions.
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