When building an investment portfolio I focus on two main targets: client goals and risk tolerance. It has been my experience that many financial plans miss the mark on these items. Risk planning can impact goal achievement or avoid unnecessary volatility. I invite you to take a complimentary portfolio risk assessment - the assessment will begin by clicking on 'Free Portfolio Risk Analysis'.
Once I have a clear understanding of a client’s goals and risk tolerance, I tailor a portfolio to fit. The overall guiding philosophy I espouse includes the following:
- Markets work and are efficient
- Time in the market matters more than timing the market
- Risk and return are related, but not all risk is worth taking
- Broad diversification is key
- Asset allocation is essential
- Keep portfolio turnover to a minimum
- Rebalancing is necessary
- Tilt to small cap and value to seek added growth opportunity
- Avoid products that are unduly complex
- Keep fees as low as possible
Once the portfolio has been optimized, we will review to ensure a ‘goodness of fit’. All portfolios are built upon each client’s objectives, but always contain flexibility to evolve and adapt as time and needs change.