Not all investments respond to market fluctuations the same way. When you know that a portion of your portfolio is potentially fortified from markets, you may feel more freedom to take calculated risks elsewhere. Allocating part of your portfolio to fixed income and cash-like instruments may make sense for you.

Additional portfolio ideas could include:

• Advanced stock option strategies
• Advanced hedging strategies

The wealthy often use advanced strategies like these in combination with others. They carefully weigh the costs vs. benefits in consultation with their advisors.

It’s critical to discover if the extra cost or extra risk is worth the extra protection and potential wealth-building power. 

Essential questions to ask yourself include:

• Do I feel that the amount I have in bonds and cash is enough to help shield from stock market volatility?
• Am I missing out by not investing in additional advanced strategies for my portfolio?
• Do I feel confident that even something like buying in at the wrong time won’t destroy my finances? 
• Are there financial professionals knowledgeable enough on this topic for me to bounce some ideas off them?

No one can tell you when the timing is “perfect”. 

And if they do, run fast in the other direction. 

A multi-pronged strategy can help give you the confidence as well as the money to seize any opportunities as they come your way. 

One prong of the strategy is your existing buy-and-hold strategy that doesn’t change according to the market’s whims. This prevents you from unnecessary trading, which is known to lower your returns.¹

Another prong is your "dry powder," or cash that you hold to deploy when you spot an opportunity.

That cash allows you to jump on prospects that come your way without selling anything else.

Essential questions to ask yourself include:

• How much cash should I hold for “dry powder”?
• What types of opportunities are good ones for me to benefit from?
• Do I have confidence in my ability to research and identify opportunities?
• Am I in touch with a financial professional who can collaborate with me on such a strategy?

You’ve already conquered the basics, like maxing out your employer retirement plan.

But there are some more advanced tax planning steps that may be available to you. 

Squeeze out all the juice from these potential advantages if you qualify.

• Contributing after-tax money to your employer retirement plan
• Using a mega backdoor Roth strategy
• Opening 529 savings plans for yourself and your spouse to pay for qualified continuing education expenses²
• Maximizing the tax advantages of your portfolio
• Implementing advanced Roth conversion strategies

There may be other tax strategies that you haven’t considered yet. 

Essential questions to ask yourself include:

• Do any of these advanced tax strategies make sense for my personal situation?
• Do I have access to additional retirement and health savings benefits through my employer?
• Am I sure I know the advanced tax strategies available to me at my level of wealth?
• Do I know a financial professional who can help me with tax planning?

You’ve probably been doing a lot of research, which often entails falling down a lot of internet rabbit holes.

It can be difficult to figure out who really knows what they’re talking about and who is just trying to sell their ideas to you. You’ve probably been bouncing some ideas off your friends, who may or may not know more about finances than you do. What might be good for your colleagues may not be the best financial move for you and your household.

The problem with researching is that you end up absorbing a lot of noise, which is often so loud that you can’t hear the signal. By spending less time online and turning off the cable financial channels, you’ll be able to focus instead of being distracted by everyone trying to make a buck off you.

It’s true that you can follow the ultra wealthy to see what they think about various investments and financial themes. One thing they are not doing is spending a lot of time researching how to invest online. For one thing, they don’t have the time – they’re busy making money in other pursuits. They also tend to surround themselves with knowledgeable professionals and collaborate with them instead of spending time online – on any topic, much less money.

Essential questions to ask yourself include:

• Are the people I follow truly knowledgeable, or are they just confident?
• How much knowledge am I able to pick up from my research, or do I tend to see the same advice over and over?
• What else could I be doing with the time I spend researching finances?
• Do I have a financial professional who understands I like to stay informed, knowledgeable, and may want to bounce ideas around?

You already know the basics, so you may have hesitated in the past to find a financial professional because:

• You already know a LOT 
• You don’t want someone telling you what to do, you want a partner who will work WITH you
• You feel like you know more than most

A good financial professional will allow you to ask your questions, bounce around ideas or new topics you’ve read in the news, and more importantly…

They’ll become a partner in your wealth-building journey, NOT a dictator. 

They’ll:

• Help keep you updated on new rules and regulations that come out each year (or with new administrations)
• Deepen your perspective as they have access to advanced strategies
• Help you with your wealth-building goals

Use your financial professional as a trusted resource.

Essential questions to ask yourself include:

• What blind spots do I have when it comes to finances?
• How can I learn more about building wealth? 
• Is there anything I’m missing out on when it comes to investing and getting a big bang for my buck?
• Do I have access to an experienced financial professional who can work with me and my money?