Tranel Talks Column

How to Invest Without Stress

Decisions regarding how to invest may result in stress, but how stressful your investment experience becomes is entirely up to you. That said, here are 4 primary investment stressors and how you can avoid or mitigate them: Decisions regarding how to invest may result in stress, but how stressful your investment experience becomes is entirely up to you. That said, here are 4 primary investment stressors and how you can avoid or mitigate them:

1) Risk

2) Complexity/Time

3) Uncertainty

4) Buyer’s Remorse

How Investment Risk Causes Stress
While the words might be nice to hear, no credible investment advisor will ever begin an advisory session with the words “You have nothing to lose if you…”. While some investments may be surer “bets” than others, no one can know absolutely the future outcome of an investment.

Our economy is based on the assumption of growth. That means that, as a holder of uninvested cash, your money will likely become less valuable over time. So simply by doing nothing but holding cash, you are already experiencing risk of loss. If you want to avoid that, you must take on another degree of risk by committing the cash to some type of investment aimed at taking advantage of the likely growth of the economy.
Generally, the higher the risk, the larger returns. The problem many investors have is that the allure of the larger return possibilities blinds them to the fact that, by definition, a “high risk” investment means you will probably lose money.

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How to Invest with Less Stress from Risk

Know your risk tolerance, be prepared to accept the corresponding probabilities as regards returns, and don’t isolate yourself and your decisions. Work with a knowledgeable expert to help you achieve those investment goals. The biggest part of how to invest without stress of risk is knowing yourself and what degree of loss you are willing to expose yourself to.

How Complexity and Time Cause Stress

Assuming you have the capacity to learn and master the complexities, do you have the time it takes to feel comfortable with your actions? Do you have the time to learn what you need to know when you need to know it? The clock drives the stress of investment complexity. Markets change, as do their drivers and influencers. Proper approaches to investing require time to learn, study, observe and adjust. Complexity and time go hand in hand as investment stressors.

How to Invest with Less Stress from Complexity

Give yourself the gift of time. Take advantage of the education and experience of advisors who have made it their life’s work to know those ins and outs. They’ve put the necessary time in to iron out the complexities and to know how to invest what amounts, where and when. Communicate your goals and your tolerances to them and see what they come back with.

Invest Without Stress with Tranel Financial

The Tranel Financial Group is ready to help you invest without stress. Our investment advisors can help you develop an investment strategy that can give you the most personal benefit.

Our advisors can meet with you to discuss your goals and map out a way to reach them. Contact us to schedule a meeting or call us today at (847) 665-1862.

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