10 General Planning and Investment Concepts

Susan Jung |

I spoke with a sophisticated investor this week and she asked me if I might consider highlighting a few investment and planning principles that we believe are key. While many of these items you may have previously considered, it’s always good to have a quick review. These concepts are a few of the beliefs that guide our advice.


  1. An emergency fund of cash and short-term fixed income is a good safety net. It does not necessarily have to be all cash as long as the fixed income available is short term and easily marketable.
  2. Expenses should be indexed for inflation to note the true reduction in purchasing power as years in retirement accumulate.
  3. Investment time horizon is a key factor in determining the allocation of a portfolio strategy.
  4. Taxation matters. One should consider analyzing tax responsibility each year and determine if one can reduce that liability.
  5. Market volatility is permanent; it will never go away.
  6. The determination of whether an asset is domestic or international is solely determined by the location of the corporate office. Look at the source location of revenue received by a corporation to determine how much international exposure is actually held within a portfolio.
  7. Overall global growth will likely slow as interest rates rise, and deficits remain a problem in many countries.
  8. Trusts can be designed to assure that assets are bequeathed in a way that is consistent with your wishes. For this reason, trusts should be reviewed to determine if any changes are required.
  9. Fixed income risk is measured by assessing bond duration and credit quality.
  10. Share buybacks increase company earnings. This is an often-watched measure and is considered a bullish sign for a company‘s stock price (excluding other issues).


These are just a few general thoughts on planning and investment issues. I trust you will find these items of interest.

Any questions, please let us now. Always happy to help.

The opinions expressed herein are provided for informational purposes only and are not intended as investment advice. All investments involve risk, including loss of principal invested. Past performance does not guarantee future performance. Individual client accounts may vary. Although the information provided to you on this site is obtained or compiled from sources we believe to be reliable, Destination Wealth Management cannot and does not guarantee the accuracy, validity, timeliness or completeness of any information or data made available to you for any particular purpose. Any links to other websites are used at your own risk.