Rooted in the belief that Americans place more faith in ideas than institutions, the philosophy of NPIM holds firm to an investor-focused discipline.
The first step in a successful investment program is to understand the level of risk that is appropriate for a given investor. A financial advisor must be in alignment with their client - working together on the same side of the table - to determine the level of risk he or she is willing to take.
Don't put all your eggs in one basket. It's a simple - yet sound - idea that applies to all things in life, including not putting one's financial future into a single type of asset. Individual asset classes can be volatile as standalone investments. Being diversified may provide stability within a portfolio. Diversification cannot eliminate the risk of investment losses or market risk. That is NPIM's committed and uncompromised advice to managing assets.
Fear and losses can drive investors out of the market at the worst times. Good days often cluster around bad days, and missing the best days in the market can significantly lower returns. By exercising patience, staying invested and managing assets in accordance with established objectives to a consistent point of reference, investors are more likely to realize the growth necessary to meet their goals.