Page 17 - North Haven Magazine Issue 33 Spring 2024

by Jeff Jolly

New to Investing?

Here’s What You Need to Know

Understanding the basics of investing is an essential first step toward
building a strong financial foundation, but many people don’t know where Kyle Casagrande -Financial Advisor, Jeff Jolly -Private Wealth Advisor,
to get started. Here are five concepts that can be helpful for new investors Cheyenne Inturri-Executive Assistant
to grasp:

1. If you are young, time is on your side 4. Spread your wealth through asset allocation
Building wealth through investing is not about getting rich quickly. Rather, Asset allocation is the process of spreading your investment dollars
it’s about taking advantage of what works best for your circumstances. If across several categories of investments. The mix of categories, or
you have recently entered the workforce, your biggest advantage is time. asset classes, you own is an important factor in your overall portfolio
Earnings generated in your portfolio, even if modest in the beginning, can performance. In other words, how you divide your money between stocks,
compound over time. The more time you give your money to grow, the bonds, cash, cash alternatives, mutual funds, and other asset classes will
greater the potential for growth over the long haul. determine the outcome, and hopefully return, you realize.

2. Be prepared for market swings As you select your investments, consider dividing your money among
Any variable investment you choose – such as stocks, bonds or real asset classes that respond differently to market forces. This investment
estate – is subject to fluctuation. History shows that markets move up concept, called diversification, can help you minimize the effect of
and down over time. Be prepared to see your portfolio suffer losses at market swings. If your investments in one class are performing poorly,
various points throughout your investing life. Historically, markets have investments in another class may be performing better. Ideally, gains in
recovered from negative periods (although in some circumstances, one class can help offset losses in another, which can help minimize the
individual investments such as a specific stock can suffer losses and overall impact of volatility on your portfolio.
never recover). Try to maintain a long-term view with your investments by
not reacting to day-to-day events. 5. Make your long-term financial security a priority
It can be challenging to focus on the long-term when you have other
3. Find your comfort level in the markets pressing financial obligations, such as paying off student loans or building
Markets are unpredictable, so it’s important that you’re intentional about an emergency fund. However, if you can allocate a small portion of your
the level of risk you’re willing to accept. If you have a lower risk tolerance, budget to your future goals, you may ease your financial burden down the
you can choose investments that are less susceptible to fluctuations road. Consider investing a percentage of each paycheck into a workplace
but be sure to consider the effects of inflation eating into your rate of retirement plan or an individual retirement account (IRA). You’ll become
return. On the other hand, if you have a higher risk tolerance and you can accustomed to living within the rest of your paycheck while the amount
stomach watching your portfolio fluctuate more widely in value, you may you have earmarked for retirement is given time to grow. If your company
want to pursue investments that offer potentially higher returns. offers a match on those savings, be sure to take advantage of it.

But remember, there are no guarantees. The key is to find a level of risk A successful investor maximizes gain and minimizes loss. Though there
you can live with over the long-term and invest accordingly. can be no guarantee that any investment strategy will be effective, and all
investing involves risk, these basic principles can help you strategically
build your nest egg over time.

Jeffrey T. Jolly, CFP® is a Private Wealth Advisor and Sr. Vice President with Root, Borajkiewicz, Lucarelli Wealth Advisors, a private wealth advisory practice of Ameriprise Financial Services, LLC. in North Haven, CT. He specializes
in fee-based financial planning and asset management strategies and has been in practice for 18 years. To contact him, (203) 407-8188 ext. 330 or visit Jeff Jolly - Financial Advisor in North Haven, CT | Ameriprise Financial
(ameripriseadvisors.com), 250 State St, E-1 North Haven, CT 06473

Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation.
Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation
in value.
Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser.

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