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f Investment Strategies or Those With Money to Invest By Paul Guerra W HILE THERE ARE many individuals who have plenty of money to invest, more than a few hesitate to do so because they are unsure of exactly how or where to invest their money. And while it may seem a logical conclusion that the more money you have the more complicated your investment picture becomes, that is not necessarily the case. Financial investment strategies can still be broken down into simple, easy-to-understand terms. Asset Allocation. One of the most important elements of a successful fi nan- cial strategy is proper asset allocation. This refers to the mix of investments you have in your portfolio, and it's important to keep a good balance of different types of investments — like stocks, bonds and cash, for example — diversifi ed across a range of industry groups or sectors. Your ultimate fi nancial objectives, the amount of time you have to invest and your own risk tolerance should all be taken into consideration as you decide exactly how to divide up your funds and where to invest them. Although asset allocation will diversify your portfolio, it will not protect against fluctuating prices or uncertain returns. Equity Investment Strategies. When investing in stocks, a good rule of thumb is to diversify your stock portfolio across a number of sectors; you may also want to overweight industry sectors whose stocks you believe are likely to benefi t from the current outlook for the economy. Once you have identifi ed these sectors, you can begin to select specifi c stocks from within them. You may want to consider stocks that pay dividends, which can give your investment an added boost. Another benefi t of these stocks is that you can usually reinvest the dividends you earn automatically into the purchase of more stock; many investment fi rms have pro- grams that allow you to do so at no cost. Another good idea is to select compa- nies that have a solid foundation and have the potential to continue to grow over the long term. Fixed-Income Investment Strategies. When you buy a bond, you are usually promised the return of your principal as long as you keep it until maturity. In addition, you earn interest on your money before the bond matures. There are a wide variety of fi xed-income products available. Some can be tax-advantaged, and many generally offer a fi xed rate of return. Estate Investment Planning. Regardless of your age, an estate plan is a valuable tool that can help preserve your estate in the unexpected event of your incapacitation or even death. It can also ensure your assets are properly managed, according to your wishes, for your heirs. Proper estate planning can even help reduce federal estate taxes for your heirs, so they can more fully enjoy the benefi ts of the money you have left to them. This is just a simple overview of some of the many financial opportunities available. It's important to tailor your asset management strategies to help you enjoy your money now and in the future. DISCLOSURE: Investments in securities and insurance products are: NOT FDIC-INSURED/NOT BANK- GUARANTEED/MAY LOSE VALUE. Paul Guerra is an Accredited Investment Fiduciary (AIF) and the president of Brookshire Wealth Management in Canton OH. Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), and Member SIPC. Brookshire Wealth Management is a separate entity from WFAFN. Wells Fargo Advisors Financial Network, LLC, Member SIPC, is a registered broker-dealer and a separate non-bank affi liate of Wells Fargo & Company. n NOVEMBER-DECEMBER 2011 MDNEWS.COM MD NEWS Cleveland-Akron-Canton | 47