“It’s not how much money you make but how much you keep.” — Robert Kiyosaki
The definition of investment management, also called asset allocation is to create an investment strategy that balances risk and reward according to an individual’s goals, risk tolerance and investment time horizon. There is no single, unifying investing strategy for everyone, as each individual requires their own investments to align with their needs and risk outlook. However, each individual strategy should include asset diversification. The theory of asset allocation is that different asset categories, such as stocks, bonds and cash react differently under similar circumstances. Market conditions that cause one asset category to do well often cause another asset category to have average or poor returns. Generally, bonds move down in value when stocks move up and vice versa. Gold and other commodities move up in value during times of inflation while bonds move down in a similar environment. By investing in multiple asset classes you’ll reduce the risk that you could lose money and your portfolio’s overall investment return will have a smoother ride.
A diversified portfolio should be diversified at two levels: between asset categories and within asset categories. So in addition to allocating your investments among stocks, bonds, cash, commodities and other asset categories such as real estate, you’ll also need to spread your investments within each asset category. Achieving this may include mutual funds or Exchange Traded funds. Sometimes, where appropriate the investments may be individual stocks and bonds. It all depends on the size of the overall portfolio and the determined size of the individual investment. This process requires both individual experience but also sophisticated software to properly create a financial investment model that suits your need.
Investing doesn’t need to be complicated to be effective.
In an era when “financial advisors” act more like a used car salesman promoting products for commissions – you need a partner… a financial advocate you can trust. You need an investment manager who embraces their fiduciary responsibility like your attorney or accountant, someone who believes in full disclosure and most importantly puts your interests first. Investing doesn’t need to be complicated to be effective. We’ll help you make sense of investment management and create a low-cost world-class strategy that will help you achieve your financial goals!
It’s your money, it’s your investment portfolio. Your investment portfolio should work for you as hard as you worked for it! Our entire practice is built around a client focused, results driven process of defining your investment objectives and accomplishing your financial goals.