You might have heard that it’s best to leave emotions out of investing. But is this always true?
Certainly, some emotions, such as fear and greed, can cause an investor to buy and sell at the wrong times and for the wrong reasons.
But other emotions might work in your favor. Consider joy – the feeling of happiness you’d get by achieving an important goal. If you can visualize your child walking across a stage, receiving a college diploma, you might be motivated to keep investing in a 529 plan or other college savings vehicle. And if you can envision yourself enjoying a comfortable retirement, you’ll be more inclined to keep investing in your IRA and 401(k).
Also, think about the most powerful emotion – love. If you have loved ones depending on you, you’ll need to protect their future. One key element of this protection is the life insurance necessary to take care of your family’s needs – housing, education and so on – should something happen to you.
By drawing on positive emotions, you can empower yourself to make the right financial moves throughout your life.
This content was provided by Edward Jones for use by Daniel Pellerin, your Edward Jones financial advisor at 189 East Main Street Suite G, in Newport, (802) 334-6261.