As independent financial planners, we are proud to research and offer comprehensive insight into various types of investments. We can help address your goals by designing an investment portfolio appropriate for your risk tolerance and time horizon.
When starting to invest it is important to understand the difference between saving and investing. You should save for the short-term goals and invest for the long-term goals. When investing for long-term goals you may want to consider investing in assets that historically have earned higher rates of return. However, keep in mind that the past is no guarantee of future investment performance or success. There is no guarantee that these investments will continue to perform in the future as they have in the past. This is why it is important to diversify your portfolio among different types of investments to reduce your risk. Having a clear objective is the best way to begin.
What is an investment portfolio?
An investment portfolio is an allocation of more than one investment asset. The type of assets included could be stocks, bonds, cash, real estate, annuities, and mutual funds. The type of investments that you would purchase depends upon several factors: your risk tolerance, the amount of money, and your time horizon.
Why don’t I just select today’s hottest investments?
Too often people randomly pick investments they read about on a personal finance website, or hear about from a family member. You have to remember sometimes today’s hot investments are often tomorrow’s cold turkeys. The fads and fancies of today may not be appropriate for your portfolio. This could result in decreased diversification and becoming too heavy in one type of investment.
Financial planners can help take your knowledge in the current fads and show you how they may or may not fit in your portfolio. Our job is to guide you and help you invest appropriately to meet your goals. Diversification does not guarantee against loss or ensure a profit, it is a method used to help manage risk.
Are investments all financial planners do?
Absolutely not! Investing is just one piece of a complete financial plan.
Financial planning is just for the wealthy?
Financial planning is about helping you achieve your life’s goals. This is not about being wealthy or not. Anyone who wants to take control of their financial life, make good financial decisions, and achieve financial independence can use financial planning. Financial planning in this day and age is no longer a luxury it’s a necessity for most people.
How do I know if I need to work with a financial planner?
Below are a few questions you can ask to determine what a financial planner could help you with:
Do you feel you make good financial decisions?
Do you feel you have little to show for how much you make?
Are you confused about all the investment choices?
Are you confused about how your current investments are performing?
Do your investments meet your goals?
Are you taking the right amount of risk for your goals?
Do you have the right amount or type of insurance?
Are you concerned if you have enough money for retirement?
Do you have your estate plan?
Are you utilizing prudent tax strategies?