A better view of your investments

Every now and then I get the question: so is now a good time to enter the stock market? Often it is after a stock market drop that comes from the turmoil of a war, an economic headwind or bad news about a particular stock.

Of course, no one can give the right answer when it is a good time to get in, simply because we cannot predict the future. Despite the fact that no one can see into a crystal ball, we do manage to give a satisfactory answer to the question and a better look at investments.

So what is that satisfactory answer? For that, we must first unravel the question behind the question. And often that very question behind the question is based on fear, ignorance or doubt. I like to help you in my role as an advisor to look at investments through colored glasses.

I therefore ask my clients the following questions to give them an appropriate answer:

1. Why do you want to invest?
The purpose of this question is to determine if you want to invest with a concrete financial goal. Setting a goal is important, because do you want to invest for a nice trip? Your children's college education? Or maybe you want to retire early? Without a goal, investing makes no sense at all, because you are only aiming for a return. Sometimes a certain return is important, but only because it creates purchasing power or enough capital for retirement, for example.

2. Do you have confidence in the economy?
Investing is participating in the economy. Your money returns because you, as a shareholder, benefit from the profits and growth of companies. So you start with a good position if you are convinced that in time the economy will grow.

3. How long can you spare money?
Taking advantage of that economy does take time. So it is very important to have enough duration to achieve an expected return. The rule here is: the longer the horizon, the greater the chance of a nice return. Is that time not present? Then it is often wise not to take too much risk, but to invest neutrally.

4. How emotionally involved are you in your investments?
Research shows that people who have little emotional involvement in their investments actually achieve higher results. Then we come back to the question we started with: is now a good entry point? The question behind this question often has to do with lurking fear of loss. If the commitment to investments and results is too great, it may be better not to start right away but to schedule an appointment first. After all, investing always means that the value of your portfolio will fluctuate and so there will be peaks as well as troughs. The important thing is that you, as an investor, should not let this distract you. grows.

5. How much discipline do you have?
Investing means discipline and sticking to the chosen strategy. This means that you should not decide to take a different course because of unrest in the market. You determine your strategy for the longer term and by disciplined adherence to these agreements you ensure that emotion remains outside the door. It also ensures that you take advantage of opportunities that arise. For example, discipline means taking profits after a sharp rise and buying cheaply after a big drop. This process is called “rebalancing” and is part of a disciplined approach.

Now you've answered five times. If it turns out there is confidence, then I dare say: I see, I see what you don't.... And a good entry moment is now!

The appropriate answers to the above questions will get you started on a long-term basis, without emotion and with the right expectations now. The economy will always fluctuate, but also know that in the long run it always shows growth. Of course, it is different for everyone, which is why it is important to always get a financial overview of your situation first. This is the basis for advice on your wealth now, but also in the future.