"Time in the market is more important than timing the market." It’s a saying that holds a lot of truth. Yet many people lose track of their long-term investment goals by focusing on what's happening right now.

We are bombarded by facts and figures all day. Turn on the television or radio or pick up a newspaper and you will invariably hear how one mutual fund, stock or market is doing well, while another is in the dumps. The status quo is not newsworthy, but good news and bad news is.

Information is coming at us from every direction. You see and hear advertisements about this mutual fund or news broadcasts about that stock, or get "hot tips" from friends and relatives. All of this information from various sources can be confusing to say the least. It is important to use filters in order to make use of it. Pay attention to the facts that are relevant to you and try to disregard the rest.

Understand the difference between short-term speculation and long-term investing. When investing for the long-term, the day-to-day fluctuations will likely have little effect on your long-term returns. Many studies have shown that market timing and constant trading can lead to lower returns than the buy and hold philosophy.

Fluctuating markets do not destroy returns. The market has fluctuated every day for decades and will continue to do so for decades to come. The key to successful investing is patience and remaining objective about the information you receive. By maintaining a diversified portfolio, talking regularly with your advisor, and being flexible with your short-term expectations, it will be easier and less stressful to reach your long-term goals.

This is a monthly article on financial planning. Call or write to Rick Sutherland CLU, CFP, FDS, R.F.P., of Fundex Investments with your topics of interest at 798-2421 or E-mail at rick@invested-interest.ca.