No two investors are alike.
Imagine trying to lump a 60-year-old, sedentary senior with a 20-year-old athlete into the same fitness program. It just will not work.
Much like this analogy, it is critical that your investment management strategy is tailored to meet your individual financial goals.
It's important to understand your:
Often I find people have investments that are not in line with their financial goals.
Some people are subjecting themselves to far more market risk than they need to.
Others probably aren't taking enough risk. If your money is in a savings account you don't need to worry about losing money in the financial markets.
However, you also need to be aware of inflation risk. In other words, if you are earning 2% and inflation is 4% as an example, your money is not keeping up the cost of the living. Over several years this can have a huge impact.
When evaluating a portfolio we believe in the importance of stress testing.
Don’t panic! We won’t be putting you on a treadmill to test your heart performance while we hurl interest rates at you!
We are talking about stress-testing your portfolio through a variety of different scenarios in order to understand how your portfolio will respond to various economic events or stressors.
In other words, we want to find out how financially healthy your portfolio really is. This assessment helps us see if there are any concerns, and tells us what adjustments might be needed.
Our ultimate goal is to maximize your investment returns using a disciplined investment philosophy combined with careful risk management.
One of the tools I use is called Riskalyze. It helps to determine how much risk an investor currently has in their portfolio. It can also help to determine how much risk an investor is comfortable taking.
I encourage you to click below and learn more. It only takes 5 minutes to find out your risk number.
How much risk are you taking? Are you talking too much? Are you not taking enough?