As a CERFITIED FINANCIAL PLANNER™ Professional, I believe that understanding someone’s complete financial picture is crucial to the investment management process. My initial discussions with clients center on what is important to them, what their goals are, and what worries them regarding their investments and possible investment outcomes. I help them identify their goals and concerns, educate them on different ways those goals may be achieved, and work together to choose and maintain an investment strategy that fits their unique situation. Investment management is accomplished through a four-step process, outlined below:
The first step in my investment process is to understand your current situation to determine what, if any, issues need to be addressed during the development of an investment plan.
The second step is to design the investment plan, one which takes into account your specific goals and objectives, time frame, risk tolerance, and income needs. This step also includes the design of an asset allocation strategy, customized for your needs.
The implementation step is the selection of investments, or of investment managers to manage the assets. If investment managers are to be utilized, a firm’s experience, past performance, compliance with performance standards and adherence to its stated investment discipline are among the important criteria that should be evaluated.
The final component of any successful investment program is the ongoing reviews relative to your defined objectives and suggest any changes where needed. This includes evaluating portfolio performance against expectations and benchmarks, determining the portfolio’s asset allocation for drift, and reviewing your personal financial circumstances for changes in your goals, risk tolerance, or time horizon that may necessitate a change in your investment strategy.
Diversification and asset allocation do not ensure a profit or protect against a loss. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Past performance may not be indicative of future results.
