Investing can be complicated. As your partner we will take the time to educate you as to the opportunities and risks that are inherent in financial markets. We are here to monitor your investment performance, proactively make changes when appropriate and answer your questions in a language that you understand.
Before we make any recommendations regarding your investment allocation, we must first establish some key metrics that help our team determine the portfolio composition that is most appropriate. Below are some of the considerations that we will evaluate and what they mean to you:
- Goals – Whether it’s funding an education, saving for a second home or investing for retirement, your goals drive our recommendations.
- Risk Tolerance – How much volatility can you handle without making an emotional decision to change your allocation or liquidate investments at an inopportune time?
- Time Horizon – When will you need to use this money? Will you need a lump sum or periodic disbursements?
- Investment Objective – Is this money earmarked for long-term growth with little regard to short-term volatility? Do you need the assets to generate income to provide additional cash flow?
- Income Taxes – Do you have significantly appreciated assets? Are you subject to the net investment income tax? Is there a future event that may materially impact your current income tax rates?
- Other Assets – What other assets comprise your overall net worth? Is liquidity a concern?
Once a portfolio has been implemented, our goal is to attain the investment returns you need over time to achieve the goals that you have defined in your tailored financial plan. We do not measure success in direct comparison to broad benchmarks, such as the Dow Jones Industrial Average or the S&P 500.
There are many potential investments that present both opportunity and risk to investors like you. Because the future is uncertain and the investment landscape changes on a daily basis, your portfolio will be diversified to include exposure to several different asset classes. Our team continually monitors all markets for future risk/reward potential and strategically selects which markets to participate in and which to avoid. The end result is an allocation designed to mitigate unnecessary risk and increase your potential return over the long-term.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification and Asset Allocation do not protect against market risk.
Periodic rebalancing allows the portfolio we have constructed for you to be adjusted for the differing growth rates among your investments. This means that careful consideration is taken to ensure that your portfolio remains aligned with your individual risk tolerance.
Your portfolio may include a variety of assets such as mutual funds, ETFs, stocks, bonds or alternative investments. The securities that we ultimately recommend will be based upon our analysis of the metrics described above and their impact on the overall financial plan.