Basic Investment Optimization Concepts
While the best way to grow your retirement accounts is to steadily and automatically allocate the same amount of money into them every month, it’s worth being aware of some concepts that play into the ups and downs of your portfolio’s performance, and how a downturn in the near future can be to your advantage in the long run. Understanding these concepts can help you to stay calm and steady when your investments fluctuate in value. Additionally, they can help you identify opportunities to invest more heavily when investments drop to a lower price than usual as part of a long-term buy and hold strategy. The three concepts for this post, all related but gradually more advanced and specific, are:
