Smart Investing: Five Core Strategies
Trusted by Financial Advisors
By Keith D'Agostino
Keith D'Agostino explained that investing can feel complex, but financial advisors often rely on foundational strategies that help clients build wealth steadily and reduce unnecessary risks While every investor’s plan is personalized, five key approaches consistently form the backbone of sound financial advice The first is strategic diversification This goes beyond simply holding a variety of assets it’s about intentionally balancing investments across asset classes, sectors, and even geographical regions. Diversification helps protect your portfolio from volatility in any one area, improving long-term stability and performance
Second is the use of consistent, scheduled investing commonly known as dollar-cost averaging. Instead of trying to time the market, this strategy spreads out investment contributions over time Whether markets are up or down, you continue investing the same amount, which can lower your average cost per share and reduce emotional decision-making.
A third strategy is rebalancing your portfolio Over time, market movements can cause your investment mix to shift away from your intended allocation. Advisors recommend periodic rebalancing to bring your portfolio back in line with your goals and risk tolerance, ensuring it remains aligned with your financial objectives
Fourth, advisors stress the importance of goal-based investing Rather than chasing market returns, this approach ties investment decisions to specific life goals retirement, education, homeownership, or travel. Each goal has a different timeline and risk profile, which guides how money should be invested and when
Finally, tax-smart investing is a critical but often overlooked strategy Financial advisors help clients structure portfolios to minimize tax liabilities, using tools such as tax-advantaged accounts, municipal bonds, and tax-loss harvesting. This ensures you not only grow your wealth but keep more of it
Together, these five strategies create a strong, flexible investment foundation. While the market may fluctuate, these principles help investors stay disciplined and focused With a financial advisor’s guidance, you can tailor these strategies to your specific needs and take a proactive, confident approach to building long-term economic success.