A Foundation For Life
Built to meet your time frame, your portfolio is divided into three categories that vary in degree of risk to your assets. Investments with low to moderate risk have less potential to grow, but are ideal to meet your income needs for the next 10 years. Investments with the most risk have more potential to grow and meet your long-term needs.
To fund your goals, the proportion of your portfolio in each category will change over time. It may, for example, contain more Growth investments if the time frame for your retirement goal is 25 years instead of next year.
Shelter Against Market Volatility
From the global slowdown to the foreclosure crisis, economic events since 2008 have been unprecedented in scale. In response, we adjusted our investing philosophy to provide more protection for your money and support your long-term goals.
By incorporating a variety of investments in our strategy, we are better positioned to fulfill three basic principles when building and managing your portfolio.
- Risk Management – Regardless of how your money is invested, it is subject to the risk that it may decline in value. The biggest risk is that your money will not keep up with inflation, the general and progressive increase in prices over time.
- Diversification – While diversification does not guarantee a profit or protect against a loss in a declining market, it can help reduce your exposure to risks. Diversification spreads your money among different types of investments that do not react the same to world and market events. Bonds, for instance, may rise in value when stocks are performing poorly.
- Long-Term Trends – Our investment philosophy is informed by the current economy where previously unimagined circumstances have become long-term trends. Investors are still coming to terms with how the markets of many developed countries are underperforming in comparison to certain emerging market countries. Another reality is that the U.S. economy is recovering at a slower rate than previous recessions.
Portfolios Designed To Meet Your Needs
Your advisor will recommend a portfolio that will invest and distribute assets according to your specific time frame and lifestyle. This framework will help shape what types of investments are built into your portfolio.
In designing your portfolio, we use traditional investments, including stocks, bonds and cash equivalents. Where appropriate, we may recommend a broader array of investments, including inflation-linked and international bonds, developed and emerging market international stocks, real estate and commodities.
For larger accounts, we may suggest using our proprietary individual equity strategies for the stock portion of the portfolio. These strategies offer additional tax management flexibility and effectively avoid fees associated with mutual fund management. Stocks are carefully selected for their profitability, competitive position, growth and cost of capital.
A Foundation For Life
Built to meet your time frame, your portfolio is divided into three categories that vary in degree of risk to your assets. Investments with low to moderate risk have less potential to grow, but are ideal to meet your income needs for the next 10 years. Investments with the most risk have more potential to grow and meet your long-term needs.
