USAA - Spring 2015 - (Page 26)

Set the stage. People often wait until the "right time" to start investing. First, build up your savings account and have an emergency fund stocked with three to six months of expenses. After that, the right time usually is now, says Dan Denbow, assistant vice president of equity investments at USAA. "Even in small increments, regular deposits provide a foundation of good habits for savings." Listen to your head, not your heart. TIP USAA suggests setting aside at least 15% of your pretax income from each paycheck for savings and investments. Stick to a proven set list. Wasif Latif, head of global multi-assets at USAA, and his team understand this principle well. "It's important to plan your portfolio in a way that includes diversifying for the long term. In the shorter term, when markets are turbulent, investors shouldn't make rash decisions. Stick to your original plan." NEXT STEPS Create a Customized Portfolio in 10 Minutes Let the USAA Portfolio Planner help you set your investment strategy. Investors need a plan built around their goals for growth, income and wealth preservation. But not everyone has time to schedule one-on-one meetings with a financial planner. "We know our members have busy lives," says Rick Martinez, an investment advisor with USAA. "So we look for opportunities to provide high-quality advice and services on members' terms - when and where it suits them best." 26 USA A SPRING 2015 Whether deploying, transitioning or retiring, service members face plenty of uncertainty. Invest conf idently by starting with solid research, rather than hopping on your buddy's latest stock suggestion. "Do fundamental research on stocks," says John Toohey, head of equities at USAA. Then, with the guidance of your financial planner, decide which are worth buying and which seem too risky. For example, before Toohey invests in a pharmaceutical company with a promising new drug, he and his team gather data. "I have to know the company, the management, the products, their sales, revenue and earnings," he says. "I have to understand the size of the market, what they're capable of charging for the drug, what the government regulations will be and what the competition is." TIP Review your financial plan and investment portfolio at least annually or after a major life change, such as a new job, a divorce or an adoption. This helps you remain on track and reminds you of your longterm goals. Case in point: USAA's Portfolio Planner is an online tool that helps design a personalized investment plan. A questionnaire gathers information about investing goals, time horizon, risk tolerance, current financial standing and other details. Then the Portfolio Planner suggests a customized mix of investments built to help meet your targets. The tool also takes your personal investment style into consideration. Prefer a hands-off approach to money management? Your suggested portfolio might include age-based funds that automatically adjust your asset balance To get started on your over time. personal "It helps ensure USAA members get Portfolio Planner, visit consistent advice, whether it's through usaa.com/ the website or over the phone," Martiportfolio nez says. http://usaa.com/portfolio?wa_ref=USAAmag http://usaa.com/portfolio?wa_ref=USAAmag

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USAA - Spring 2015