You may be looking forward to “getting away from it all,” but, as you know, vacations actually require a fair amount of planning. And it might surprise you to learn that some of the efforts required for successful vacations can impart some valuable lessons in other areas of your life — such as investing.
• Secure your home. If you’re going on vacation for a week or so, you may need to take some steps to safeguard your home: stopping your mail and newspaper, putting on a timer to turn on lights, alerting your neighbors that you’ll be out of town, and so on. But while it’s important to secure your home today, you will also want to help ensure it will be there for your family in the future, should anything happen to you. That’s why you’ll want to maintain adequate life and disability insurance.
• Know your route. If you are driving to your vacation destination, you will want to plan your route beforehand, so that you can avoid time-consuming delays and detours. And to reach your financial goals, such as a comfortable retirement, you will also want to chart your course — by creating an investment strategy that is designed to help you work towards those goals based on your specific risk tolerance, investment preferences and time horizon.
• Keep enough gas in the tank. As you set out on a road trip, you need a full tank of gas in your car, and you’ll have to keep refueling along the way. And to “go the distance” in pursuing your financial goals, you will need to have sufficient “fuel” in the form of investments with reasonable growth potential.
• Protect yourself from getting burned. If your vacation plans include a stay at the beach,make sure you’re all using sunscreen. When you invest, you can also get “burned” if you are not careful — especially if you are inclined to chase after “hot” investments. Instead of becoming a “heat-seeking” investor, focus your efforts on building a diversified array of quality investments appropriate for your needs. Keep in mind, though, that diversification, by itself, can’t guarantee profits or protect against loss.
So, put these principles to work to enjoy a pleasant vacation — and a potentially rewarding investment experience.
• This article was written by Edward Jones for use by Ahwatukee Foothills Edward Jones Financial Advisor Joseph B. Ortiz, AAMS, CRPS. Reach him at (480) 753-7664 or firstname.lastname@example.org. Accredited Asset Management Specialist and AAMS, Chartered Retirement Plans Specialist and CRPS are registered service marks of the College for Financial Planning.