Investment Management

The goal of investment management is to invest and grow your assets wisely through risk-based asset allocation portfolios and avoid the mistakes that ordinary investors make. The five main objectives with investment management include:

1) Implement a suitable mix of investments based on personal tolerance for risk

Financial gurus suggest that one of the key investment strategies is to diversify your money among many different asset classes based on your own tolerance for risk. Risk tolerance is determined through a questionnaire and the proper asset allocation model is implemented and maintained through good times and bad. A main focal point with this approach is helping you maximize the upside growth potential of the stock market while minimizing downside risk. Having an advisor helps you stick to the plan during times of economic uncertainty and doubt, which is when many investment mistakes are made.

2) Cost-effective investment strategies

Investment costs can impact the long-term performance of a portfolio which is why one of the main considerations when building an investment portfolio is costs and fees. We focus on using high-quality investment programs with cost-effective options and products.

3) Tax diversification

Perhaps one of the more complex and ever-changing components of investing that can greatly impact wealth building is taxes. The investment planning process uses tax strategies to help you diversify from a tax perspective. This can help to reduce or eliminate taxes over time.

4) Periodic investment rebalancing

Periodic rebalancing allows you to take advantage of the ‘buy low, sell high’ investment strategy by selling asset classes that have performed well in order to lock in those gains and then buying previously underperforming asset classes that may be in a more favorable environment to outperform.

5) Behavioral coaching

An overlooked aspect of investing is the power of having a coach. As the famous DALBAR research repeatedly shows, we can be our own worst enemy by investing with emotion instead of logic. Investors tend to make the most mistakes during times of economic euphoria and fear, which is why the average investor’s performance is much lower than the average rate of return of the general stock market. Having a coach in your corner will help you avoid investment mistakes that the common investor will make.