When it comes to defining conservative investing, one of the most important questions that needs to be answered is, “What do you want to get out of your investments?”. To put it plainly, what’s the plan for this money in the future? This is so critical because most of the time advisors think being a conservative investor means one thing and investors think another.
In this video, Tom and Brendan spend some time defining conservative investing. They cover topics like the typical asset allocation model for conservative investors, what those returns have looked like to date in 2013 and years past, and what conservative investors should be expecting out of their investments each year. All of these points are equally significant when it comes to defining conservative investing.
As mentioned earlier, being on the same page as your advisor when it comes to conservative investing is paramount. Conservative investing is going to mean something slightly different to each investor based on their situation and personal goals.