The investment planning process is used to determine the most effective investment strategies and investment choices for your situation. We don’t believe that there is such thing as a “best investment” because each person has unique needs, goals, and tolerance for risk. Our investment planning approach takes this into account so that you get a customized investment solutions that matches your unique situation.
Assessing Risk Tolerance
The first step we take with our investment advisory and portfolio management clients is the risk tolerance analysis. This analysis helps us to understand how much risk you are comfortable with as well as what specific risks could have the biggest impact on your overall financial plans. Only after understanding these things can we begin to assist you with determining asset allocations and with selecting specific investments.
Selecting Asset Classes
Selecting asset classes, or “Asset Allocation” is the second step in our investment advisory process. Using the risk tolerance information that we have gathered, we work with you to determine what categories of assets are best suited to your investment portfolio. We utilize a broad variety of asset classes, including stocks, bonds, real estate, and commodities. We also use other non-traditional investments when needed.
Once we have determined the correct mix of asset classes, we begin the process of selecting individual investments and choosing the most appropriate investment style.
Choosing Individual Investments
We have constructed several model portfolios across a range of risk tolerance preferences that use actively-managed and passively-managed investments. Our approach allows us to combine these model portfolios as needed to suit the needs of each individual client, while allowing us to effectively manage the models to seek superior performance. Depending on your specific situation, we might also choose to create a customized portfolio that does not utilize our models-based strategies. No matter which approach we take, everything we do is designed to be in your best interests.
For an evaluation of your current investment portfolio and to find out more about how our approach to investment management can help you, contact us today.
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