A New Year’s resolution to invest can be hard to keep. This article covers common obstacles and practical steps for staying consistent. All investing involves risk, including loss of principal.

Why Investing Resolutions Are Hard to Keep

Life gets busy, markets fluctuate, and early bursts of motivation can fade. Common obstacles include setting goals that are too ambitious, having a vague plan, and being discouraged by market volatility. Short-term fluctuations are a normal part of investing, and investments can lose value.

Practical Steps

Set specific, measurable goals. Vague resolutions like "I want to save more money" are harder to keep than specific ones. For example, a goal might be to invest a set dollar amount each month. Start with an amount you are comfortable with and adjust as your circumstances change.

Track your progress. A spreadsheet or budgeting app can help you monitor your income, expenses, and contributions.

Consider automating. Recurring transfers from your bank account to your investment account can help you keep contributing without having to think about it. This approach is known as dollar cost averaging. It does not assure a profit or protect against loss in declining markets.

Consider diversifying. Spreading your money across different asset classes and investments can reduce the impact of any one falling, but diversification can’t guarantee against loss [1].

Consider your options for advice. If you want help creating a financial plan, consider speaking with a registered investment professional.

Using Alinea Toward Your Goals

Alinea Invest, Inc. offers a mobile investing app. Investment advisory services are provided by Alinea Advisory Services LLC, an SEC-registered investment adviser and a wholly owned subsidiary of Alinea Invest, Inc. SEC registration does not imply a certain level of skill or training.

• Model portfolios. Alinea asks about your risk tolerance and assigns you one of four risk-based model portfolios of ETFs by algorithm. Alinea rebalances it monthly. The portfolios are the same for every investor at a given risk level.
• Investing Playlists. Playlists are collections of stocks and ETFs organized around themes or interests. Some Playlists have their weights set by AI on a schedule, with no human review of the changes. Alinea oversees the algorithm and monitors it for anomalies. Themed portfolios may be less diversified and more volatile.
• Recurring investing. You can set a fixed amount to invest on a schedule, an approach known as dollar cost averaging. It does not assure a profit or protect against loss in declining markets.
• Allie. Allie, Alinea’s AI assistant, can explain your holdings, market news, and financial terms in plain language. At your request, Allie can also start a deposit, withdrawal, buy, or sell, and you confirm every transaction before it runs. Allie provides educational research and feedback only, does not provide investment advice or recommendations, and can make mistakes.

Brokerage accounts are held at DriveWealth LLC, member FINRA/SIPC, which is not affiliated with Alinea. SIPC protects securities customers of its members up to $500,000 (including $250,000 for claims for cash) if the brokerage firm fails financially. It does not protect against a decline in the market value of your securities [2]. Bank accounts are linked through Plaid, Inc., a third party not affiliated with Alinea, and we do not store your online banking credentials. SSL and 256-bit encryption help protect your data.

Frequently Asked Questions

What is a New Year’s resolution related to investing?

It is a goal set at the beginning of the year, such as investing regularly or reaching a specific savings amount.

How long does it take to see results?

There is no set timeline. Results depend on your investments, market conditions, and your time horizon, and investment returns are not guaranteed and can be negative.

What makes an investing goal effective?

Many people find goals easier to keep when they are specific, measurable, achievable, relevant, and time-bound, with a realistic plan and regular check-ins.

What mistakes should I avoid?

Common pitfalls include setting unrealistic goals, not having a concrete plan, putting everything into one investment, reacting to short-term market declines, and abandoning your plan altogether.

How can Alinea help me stay consistent?

Alinea offers recurring investing, model portfolios assigned from your questionnaire answers, Investing Playlists, and Allie, an AI assistant that provides educational information. These features do not reduce risk or assure any result.

Disclosure

Advisory services are provided by Alinea Advisory Services LLC, an SEC-registered investment adviser and a wholly owned subsidiary of Alinea Invest, Inc. SEC registration does not imply a certain level of skill or training. Brokerage and custody services are provided by DriveWealth LLC, an unaffiliated registered broker-dealer and member of FINRA/SIPC.

This content is for informational purposes only and is not an offer, solicitation, or recommendation to buy or sell any security. All investing involves risk, including loss of principal. Past performance does not guarantee future results. Allie is educational only, does not provide investment advice, and can make mistakes. Some Playlists have their weights set by AI on a schedule, with no human review of the changes, and can be wrong. Alinea oversees the algorithm and monitors it for anomalies. Themed portfolios may be less diversified and more volatile. Alinea is not affiliated with the sources listed below, and their inclusion is not an endorsement. Alinea charges a subscription fee for its advisory services; see Item 5 of Form ADV Part 2A. Alinea’s support team handles questions about using the service only and does not provide investment advice.

See our Form ADV Part 2A, Wrap Program Brochure, and Form CRS at www.alinea-invest.com/legal/home. For more on Allie, see AI Allie – Disclosures & Terms of Use at www.alinea-invest.com/legal/ai-allie-disclosures-terms-of-use.

Sources

[1] U.S. Securities and Exchange Commission, Investor.gov, “Diversify Your Investments.”

[2] Securities Investor Protection Corporation (SIPC), What SIPC Protects (sipc.org).

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