Dolf Dunn Wealth Management, LLCDolf Dunn, CPA/PFS,CFP®,CPWA®,CDFA

Private Wealth Manager11330 Vanstory Drive

Suite 101Huntersville, NC 28078

704-897-0482dolf@dolfdunn.comwww.dolfdunn.com

The Traits of a Good Investor and How Women Can Makethe Most of Them

November 19, 2013

Women are increasingly taking responsibility formanaging their own money. That includes those whoin the past may have left investing to a spousebecause they were busy raising a family or had nointerest in the subject, but who have since found thatdivorce, a spouse's death, or the need to help aparent have forced them to learn some investmentbasics. However, many women, including high-levelprofessionals who are experts in their field, may notfeel confident about their investing abilities.

If you're one of them, you may have more going foryou than you think. Traits such as patience,willingness to confront and deal with mistakes, andrecognizing when help is needed can benefit portfolioreturns, particularly for a long-term investor. Even riskaversion, sometimes a problem for women who areconcerned about their investing abilities, can be anadvantage if it's applied wisely.

Feel you aren't as knowledgeable asyou should be about investing?Chances are you're in good company. Plenty ofpeople know less than they should but aren't willing torecognize or admit it; as a result, their portfoliossuffer. Recognizing what you don't know can be anasset. Being willing to ask questions and understandsome basics will serve you better than sticking yourhead in the sand.

Also, being a good investor doesn't mean you need todo all the work yourself. A financial professional canhelp you set a strategy, select specific investments,monitor their performance, and make adjustments ascircumstances dictate.

If you make a mistake, can you admitand deal with it?Many investors' portfolios have suffered because of afailure to recognize an investing mistake and dealwith it; instead, their owners hang on, waiting for aturnaround that may never come. As the saying goes,"Good investors know how to take profits; great

investors know how to take losses." There's neverbeen an investor who hasn't experienced losses;smart ones follow a discipline that helps them knownot only when to buy but also when to sell aninvestment or adjust a strategy that hasn't worked.

Are you risk averse in the right way?When people feel unsure about their investing skills,they sometimes take the path of least resistance andinvest very conservatively. In some cases, this can behelpful. For example, avoiding big risky bets that cansingle-handedly drag down a portfolio can sometimeslead to better risk-adjusted performance. However,this trait can also be a double-edged sword if you'reinvesting far more conservatively than is appropriatefor your goals and circumstances, either out of fear ofmaking a mistake or from not being aware of howrisks can be managed. Being unaware of howinflation can affect investment returns or how tobalance various types of risks can leave youvulnerable to a shortfall in your retirement savings orother financial goals.

You don't have to become a financial wizard tounderstand principles that can help you manage risk.Having a child involves many risks, but it's the rareparent who knows everything that will be neededbefore taking the plunge. You prepare as best youcan and improve as you go along; it's the same withinvesting.

All investing involves risk, including the potential lossof principal, and there can be no guarantee that anyinvestment strategy will be successful. But perhapsthe biggest risk of all is not taking the steps needed tosecure your financial future.

Can you be patient?Excessive trading costs have historically been one ofthe reasons individual investors often underperformthe stock market as a whole. One study found thatbecause women are less likely to indulge in excessivetrading, they outperform men.* A portfolio is--orshould be--a means to an end, not a competitive

One of the best thingsyou can do for yourselfand/or your family is tobe prepared to manageyour financesresponsibly. Even if yousee investing asoverwhelming orcomplicated and boring,you need to know thebasics behind awell-thought-outinvestment strategy--atleast enough to protectyourself from fraudand/or communicateeffectively with afinancial advisor orspouse.

Page 1 of 2, see disclaimer on final page

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2013

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for anyindividual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performancereferenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.

The tax information provided is not intended to be a substitute for specific individualized tax planning advice. We suggest that you consult with aqualified tax advisor.

Securities offered through LPL Financial, Member FINRA/SIPC

sport. It's a way to pursue your financial goals, ratherthan a measure of self-worth or a vehicle for braggingabout how you "beat the market."

Potential investments are all aroundOdds are you make many purchasing decisions everyday. That means you have a lot of opportunities toobserve products and consumer behavior. Everydaylife can be a rich source of information that can beapplied to investments. For example, if all your friendsseem to be flocking to a new retailer or buying acertain type of computer, you might be seeing anemerging trend or company whose value hasn't yetbeen recognized by Wall Street. That doesn't meanyou should invest without additional research, ofcourse, but your own daily experience can suggestideas to explore. Conversely, if you notice that atrendy item that was so hot last year now seems to beshowing up more often in clearance bins thanshoppers' carts, you might want to see whether thestock is a candidate for sale.

Step up your gameIf you're afraid to make decisions because youdon't know a mutual fund from a muffin top:

• Get some basic information. Your retirement planat work might provide educational materials orassistance, and there are plenty of books,magazines, and websites that can help. Don't beafraid to talk to friends who may have similarquestions, but do your own research, too.

• Take baby steps and learn as you go. You don'thave to do everything at once; even a small step isbetter than none.

• Don't postpone getting started; the longer you wait,the fewer options you may have. Even if you don'tmake your own financial decisions now, the oddsare good that you may someday have to do so.

• Recognize that you're not alone. Others may havethe same doubts as you about their investingabilities.

If you've already started working toward yourgoals but aren't sure you're on the right track:

• Clarify your investing goals, your time horizon, andyour level of risk tolerance and make sure you'reproperly diversified. If you're not sure how yourmoney is invested, get whatever help you need todevelop an asset allocation strategy that'sappropriate for your goals and risk tolerance.

• Make sure your expectations for a return on yourmoney are both realistic and sufficient to give youthe best chance of achieving your goals. Don'tfocus solely on risk, but also on potential rewardand ways to try to manage risk. And rememberthat an investment's past performance is noguarantee of its future results.

• Some investments offer potential growth, somefocus on protection of your initial investment, andsome provide regular income payments.Understand what you own and what role eachinvestment fills in your portfolio. Thoughdiversification can't guarantee a profit or eliminatepotential loss, it can help you manage the typesand level of risk you take.

• An investment club can be a way to exploreinvesting in a social setting. The NationalAssociation of Investors Corporation can help youstart or find one.

If you're money savvy:

• To ensure that you're making the most of yourmoney, benchmark the performance of yourinvestments and your portfolio as a whole againsta relevant index or model portfolio.

• Make sure your asset allocation adjusts tochanges in your life circumstances.

• Don't underestimate the impact of taxes, fees,expenses, and trading costs on portfolioperformance. If you've amassed substantialassets, you might benefit from expert help indealing with issues such as taxes, estate planning,and asset protection.

• Have a game plan to keep yourself from panickingduring volatile markets.

Equipping yourself to pursue your financial goals istime well invested.

Note: Before investing in a mutual fund, carefullyconsider its investment objective, risks, fees, andexpenses, which can be found in the prospectusavailable from the fund.

*"Behavioral Patterns and Pitfalls of U.S. Investors,"August 2010 Library of Congress report for the SEC.

Being familiar with thefollowing concepts canequip every woman to bea smarter investor:

• The three primarytypes of investments(also known as assetclasses)

• The roles of income,growth, and safety ina portfolio, and whichinvestments focus oneach one

• The process ofdeciding how much todevote to each assetclass (assetallocation)

• The benefits ofdiversification

• Risk tolerance andhow your time horizonaffects it

• The differencesbetween mutual fundsand individualsecurities

• How much you'll needto save for retirement

• What returns youwould need to reachyour goals

• How much incomeyou want your assetsto generate inretirement

• The role of variousfinancial vehicles,such as 401(k)s andIRAs

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