Investing requires perseverance and trust. Despite occasional drops in stock markets and recessions, the overall trend is upwards.
Answering the fundamental questions of who, what, where, why and how will help you grow your retirement fund safely.
Who are you? Your family? You can drive your car forward if you are in control of your financial future. You may need to change lanes, stop at red lights, and maybe even switch models, but you can reach your destination and achieve your goals.
The answer to “Why?” is easy. You can protect your retirement account and regular investment account and make sure it grows profitably. Your money will slowly lose value if it doesn’t grow. Inflation makes every dollar less valuable tomorrow than it is today. You aren’t really improving your financial future, or your ability to enjoy retirement while keeping up with inflation.
The “When” refers to when you will take action. You may have lost more money than you did in the last recession.
“When” refers to when to sell your position if they are declining or stagnant and to purchase a new stock, ETF or fund that is going up. This will help you achieve your goals.
“Where” refers to where you will put your money and your future. There are many factors that go into this decision.
Are you a fan of stocks, ETFs, mutual funds or a combination of both?
Are you a member of a retirement or regular wealth-building account?
Are your investments, money and your money in your hands?
“What” refers to different factors that are similar to “Where”, but from an entirely different perspective.
What stocks, ETFs and funds will you invest in to achieve your goals?
Which investment software will you use to make your buy-sell recommendations
Which investment software or technique will you use to help you decide when to exit the market and when you should start investing again?
“How” refers to putting When, Where, and What together. These elements can be combined in a complementary manner, such as a baseball or football team performing a play. Strong defenses will stop major losses.
If your how is based on relative strength investing using alpha or relative strength momentum analysis, you can receive winning recommendations in almost all market conditions.
If you have a market exit signal, you can still invest knowing that if the markets fall into a hole you will be signaled to withdraw and protect your investment until they rise again. Proftiability is the key to success.
As long as you take a holistic look at all your investment options, the “how” will also tell you which investment to make. Also, you don’t have to limit yourself to mutual funds or stocks.
The “how” part of the title will also consider how much time you have and when it is possible to manage your finances and take control. You can choose the route you prefer or how much fuel you want. This is just like driving a car. Your financial future and vehicle are yours.