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To achieve your future investment goals, you must make prudent investment decisions today. One piece of a comprehensive financial plan is the proper design and implementation of an investment plan. Surprisingly, most people do not have in place any type of formalized investment plan. We will help walk you through the following steps to formalize your investment plan: • Establish Your Investment Time Horizon: In this step, we will discuss your financial goals and how long you plan to invest to meet these goals. We will consider whether your goals are realistic or need revision. Based on the time horizon of your various objectives, we will help you choose the correct combination of short-term and long-term investments. • Determine Your Risk Tolerance: Each of us falls somewhere on the spectrum of risk tolerance. We all want higher investment returns, but with higher returns comes greater risk of loss. On the other end of the spectrum, risk can be eliminated by putting money into guaranteed investments like savings accounts or CDs, but this creates a new risk - the risk that we will eventually run out of money. As you see, a perfect balance must be struck between higher returns and lower risk of loss. We will work with you to determine your current risk tolerance and risk exposure. • Allocate Your Portfolio: With the information we have gathered in the above three steps, we will work together to select the investments that should meet your goals while satisfying your time horizon and your risk tolerance. Studies have shown that a properly balanced portfolio is the primary factor that will determine the long-term success of your overall investments. • Evaluate Your Overall Portfolio's Performance: Once we choose the right investments and establish our expectations accordingly, we will judge the performance of your investments by comparing the actual returns against the expected returns. We will also compare your actual returns to a meaningful benchmark, such as the S&P 500. In addition, we will review your particular investments to reevaluate if they continue to meet your investment criteria.
• Adjust Your Portfolio: Your portfolio should be adjusted periodically to maintain your goals, risk tolerance and investment criteria. If your goals or time horizons change, your investments may need to change as well so they continue to meet your new objectives. We will help you rebalance your portfolio when it underperforms AND when it become more volatile than your risk tolerance. If you would like more information on how we can help you achieve your investment goals, please complete the form below. |
