EXPERIENCE AND WISDOM: Through a disciplined process of listening, analyzing, implementing and monitoring, we work with you to create a plan designed to help you pursue your unique financial vision. It all begins with a conversation. First we gather essential information (Step 1) about everything from your current assets and income to your specific financial objectives. Then we discuss your current situation, your financial goals and your vision for the future.
GUIDANCE: Next, we identify realistic expectations for investment returns suited to your risk tolerance. Then we create a plan (Step 2) recommending possible strategies to help you with your financial objectives and ultimately striving to assist you pursue your financial goals. This will be your guide for future actions and your source for benchmarks against which to monitor your progress and performance.
EFFICIENCY: Using the strategies presented in your plan, we will implement the solutions decided upon (Step 3). This may seem like the end of the process, but it’s only the beginning.
SERVICE: We then monitor your portfolio periodically and report on portfolio performance. We are also continually looking for opportunities to enhance your plan. We will aim to meet/talk at least once a year to discuss your progress, explore new ideas and make any necessary adjustments (Step 4).
CONFIDENCE: We provide all of this plus our promise to deliver a personalized service. We want your business, we appreciate the opportunity and trust that you place with us, and we strive to earn it every day!
Do keep in mind that all investing involves risk including loss of principal. No strategy assures success or protects against loss.
How important is asset allocation? Studies by Lipper have found that more than 90% of the variation in a portfolio’s returns is determined by how the portfolio’s assets are allocated among major asset classes: stocks, bonds and cash. Market timing and the selection of individual securities are not nearly as critical.
1 Asset allocation seeks to maximize the performance of your investment portfolio using diversification and disciplined investing. However, using an asset allocation methodology does not guarantee greater, or more consistent returns, or against loss; rather it is a method used to manage risk. your investment objectives, time horizon and risk tolerance will drive your asset allocation and help you determine the right balance for you.
2 Modern Portfolio Theory: Investors should keep in mind that there is no certainty that any investment or strategy will be profitable or successful in achieving investment objectives.
Asset allocation does not ensure a profit or protect against a loss.
Asset allocation seeks to maximize the performance of your investment portfolio using diversification and disciplined investing. However, using an asset allocation methodology does not guarantee greater, or more consistent returns, or against loss; rather it is a method used to manage risk. Your investment objectives, time horizon and risk tolerance will drive your asset allocation and help you determine the right balance for you.
Investments in foreign securities may be affected by currency fluctuations, differences in accounting standards and/or political instability. These risks are more significant in emerging markets. No strategy or theory can provide any certainly that any investment will be profitable or successful in achieving an investors investment objectives. You may be able to gain over long periods of time if you can increase your level of investment returns without incurring undue risk. The power of compounding may make this possible.
To illustrate the impact of improving your average annual return by only 2% over a long period of time, look at how a portfolio of $50,000 grows over various time periods at 4%, 6% and 8% annual expected rates of return.
By maximizing your return for the level of risk you are comfortable with, you may be able to increase your retirement nest egg.