4 Investment Strategies to Boost Financial Awareness
Managing your money isn’t just about making ends meet—it’s about using investment strategies that support your future goals.
A 2024 survey by global asset manager Janus Henderson found nearly half (48%) of Americans do not hold any investment assets.
Being financially aware means understanding where your money is going, how it’s working for you, and what changes you can make to get better results. One of the most effective ways to build this awareness is by making intentional investment choices.
“You don’t have to be a seasoned investor to make smart decisions. Even small steps can bring clarity and control to your financial life,” says Ian Kurrus, Vice President of Investments at David Lerner Associates, Inc.
Here are four practical investment moves you can make today to take ownership of your financial direction.
1. Take Inventory of Your Current Investments
Start with what you already have. Before you make changes or add to your portfolio, it’s essential to know where you stand.
- List all your current investment accounts: retirement accounts, brokerage accounts and savings accounts.
- Note what each account is for, the types of investments held, and how they’re performing.
- Check for overlap in holdings or unnecessary fees. Are you invested in multiple funds that are very similar to each other? Are you paying fees that could be reduced?
This exercise may only take an hour or two, but it can give you a clear picture of what’s working, what’s not, and where adjustments could be made. Many people overlook this step, but it’s hard to make informed decisions without knowing where you stand financially.
2.Revisit Your Investment Goals and Timeline
Your investments should be tailored to your specific goals. Whether you’re saving for a home, planning for retirement, or building wealth for your family, each goal comes with a timeline and a risk profile.
- Ask yourself: What am I investing for? When do I want to reach this goal?
- Are your current investments aligned with that timeline? For example, longer-term goals may support more risk, while shorter-term goals might require more stability. Everyone’s situation is unique to them.
- Consider whether your risk tolerance has changed. It’s normal for your comfort level to evolve with age, income, or life changes.
Reviewing your goals keeps your investment strategy grounded in what really matters to you. It also helps prevent emotional decisions that can throw you off course.
3.Educate Yourself on the Basics of Asset Allocation
You don’t need to be an expert but understanding how your money is divided among different asset classes can help you make more informed decisions.
- Stocks typically offer higher growth potential but with more volatility.
- Bonds tend to be more stable but may offer lower returns.
- Cash or cash equivalents provide safety and liquidity, but little growth.
A diversified portfolio helps manage risk and align your investments with your goals. Too often, investors take on more risk than necessary or stay too conservative, limiting potential growth. Rebalancing your portfolio periodically ensures it stays aligned with your intended allocation.
If this feels complicated, an investment counselor can help you assess your current mix and make adjustments that match your priorities and comfort level.
4. Use Tools to Track Progress and Spot Gaps
Part of financial awareness is ongoing monitoring. Once you’ve organized and assessed your portfolio, the next step is to keep tabs on how it’s doing.
- Use online dashboards, mobile apps, or spreadsheets to track your investments.
- Look for patterns in your contributions, returns, and expenses. Are you consistently investing? Are your assets growing at a reasonable pace?
- Identify areas where you may be falling behind—such as not contributing enough to a retirement account or keeping too much in cash.
Monitoring your progress keeps you in control. It also helps you spot opportunities to increase contributions, shift your asset allocations or reduce costs.
Improving your financial awareness doesn’t have to be overwhelming. With a few practical steps, you can take better control of your investments and make decisions that move you closer to your goals. Knowing where your money is, how it’s invested, and whether it aligns with your needs empowers you to make more confident choices.
If you want a clearer understanding of your investment picture or need help aligning your accounts with your goals, consider contacting David Lerner Associates. We can help you identify your priorities, assess your current strategy, and suggest practical steps to improve it. Use National Financial Awareness Day as your prompt to take control and invest with purpose.
Material contained in this article is provided for information purposes only. It is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities. These materials are provided for general information and educational purposes, based on publicly available information from sources believed to be reliable. We cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice