Making investment decisions can be a daunting component of wealth management. When we meet with clients for the first time, we often find they are not making any intentional investments because they don’t have a formal strategy in place. Investment management is more complex than simply choosing a few investments, crossing your fingers and hoping for the best. With infinite options available, we focus on helping our clients navigate markets and determine a strategy they are comfortable with.
The first step in creating an effective investment management strategy is to gain a thorough understanding of your risk tolerance. Every investor is different in regards to the kind and the amount of risk that they are willing to take.
When determining your tolerance for risk, consider these factors:
• The time horizon for your investment.
• The amount of downside risk you are willing to accept.
• The correlation of each of your investments to one another.
• Where we are in the economic cycle.
• If you are far from, close to, or in retirement – if you are in retirement, consider the other income sources you have to draw on.
• Tax implications of your investments, the liquidity of the investment, and the underlying costs.
Our financial advisors can guide you through the process of discovering your level of risk tolerance. Our goal, first and foremost in regards to investment management, is creating a plan that you are comfortable with and confident in pursuing.
Once we have an understanding of your risk tolerance, we can offer you insight into the markets and identify the opportunities that are well suited for your unique needs. We focus on your investment objectives and build your portfolio to efficiently work towards those goals.
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