Your portfolio guidelines will be the foundation for every decision we make for your portfolio. When drafting these guidelines we will address the following:
- Your investment
- Your time horizon
- Your risk tolerance
- Your current and anticipated income needs
All of these variables will help us determine the appropriate investments for your portfolio. We will then actively monitor your account and re-balance when necessary.
We recognize the volatility of the market makes diversification necessary for long term stability. A commitment to investing across asset classes (i.e., cash, stock and bonds), and within those particular asset classes (i.e., different sectors and market capitalizations) is the key to achieving this diversification. This approach reduces exposure to short term market swings which happen regularly.
Our commitment to diversification reflects our belief that market timing is not a successful long term strategy. While we will constantly monitor economic trends, and make changes accordingly, we will refrain from making predictions about the short term direction of interest rates and the stock market. We will, however, continually monitor the performance of individual stocks and funds in the portfolio, and make changes when we feel necessary.
Over the years, we have found mutual funds to be the best vehicle for individual investors to diversify their portfolio. Funds now exist to satisfy every investment niche, and we believe that the advantages of diversification and access to top managers outweigh any disadvantages. That being said, should your current portfolio include individual stocks, we will not sell them outright. We will assess each stock based on the portfolio guidelines and other factors to determine the right course of action.
It is important to us that each client is completely aware of every trade in each account. Before any investments are bought or sold, we will contact you for authority. We find that this practice keeps all clients informed and up to date on their portfolio. |