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What Astute Investors Should Know
Smart Investing Begins with a Plan
Your investment plan is the roadmap in pursuit of your goals. No matter how different your goals may seem from one another, each is related to a universal goal: Having the money you need when you need it.
Finding the Right Balance
Once you determine where you want to go, how do you determine the best path to get there? Risk and return go hand in hand, so it's up to each of us to determine the best balance between the two. Some investors want lower risk strategies to emphasize enhanced stability and lower return potential, while others pursue higher return potential while accepting greater risk.
The balance we select goes a long way toward determining the structure of the portfolio that we build. Some investors may place a high emphasis on opportunity and
growth and may be comfortable with a portfolio that features heavy exposure to stocks, which typically offer more return potential but greater volatility. Other investors may want to consider a portfolio with a sizable allocation in bonds, which usually have a more modest risk and return profile.
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