Investment Planning

Get Your Investments on Track

  • Are you concerned about how to best diversify your investments?
  • Are your investments over concentrated in one asset class, industry or security?
  • Are you overtrading your account trying to outguess the market?
  • Who selects your investments?
  • With whom do you review your portfolio each quarter?
  • Can you track all of your investments on one consolidated statement?

Investment planning is essentially structuring and monitoring a client's assets in order to accomplish financial goals. It is not about trying to outperform the S&P 500 Index, the client's next door neighbor's return or for that matter even a bank CD return for any one-year time period.

The following are five risks to consider when evaluating an investment:

  • Market Risk is the risk of loss of an investment's value due to fluctuation in the overall market or economy.
  • Inflation Risk is the risk of loss of asset purchasing power.
  • Interest Rate Risk is the risk of decline in invested assets due to changes in market interest rates.
  • Business Risk is the risk a company (and a common stockholder) takes in being involved in a specific industry or market.
  • Liquidity Risk is the risk the investor faces if he is unable to sell an asset quickly without significant concessions in the price desired.

Our Approach:

Asset allocation is a method of assisting those concerned with investment analysis, portfolio design, and performance evaluation in expressing quantitatively their views regarding risk and its relationship to investment return. It focuses attention on the overall composition of the portfolio rather than the traditional method of analyzing and evaluating the individual components. As your advisor, we are therefore able to examine and design portfolios predicated on explicit risk-reward parameters and on the identification and quantification of portfolio objectives.

What is Asset Allocation?

Simply stated, asset allocation is the process of selecting a mix of asset classes and the efficient allocation of capital to those assets by matching rates of return to a specified and quantifiable tolerance for risk. Risk tolerance is essentially that percentage of an investment portfolio that an investor is willing to risk in seeking a specific rate of return. It is no longer a one-dimensional process of selecting the right stock, bond or property to place in a portfolio.

It is a misconception, albeit a widely held one, that investors must accept higher levels of risk to achieve higher returns. While no strategy assures success or protects against loss, by using asset allocation methodologies, investors can strive to seek higher returns while managing less risk.