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Brad and Jeff attribute their success in helping their clients to taking the time to understand their needs and knowing which products are best for their situations. To best assist their clients, Brad and Jeff often use the following systematic approach:
Analyzing Each Client’s Situation:
Since every individual investor’s personal situation is unique, it is important for Jeff and Brad to have an accurate understanding of a client’s financial status and objectives before creating an investment plan or strategy.
Brad and Jeff extensively interview their clients to assess their current financial situation, identify their goals, and to determine how comfortable the client is with taking risks. By assessing a client’s current position and risk profile, Brad and Jeff can help prioritize his or her goals.
Developing a Plan:
After assessing a client’s financial situation and tolerance for risk, Brad and Jeff can then help the client in determining an asset allocation plan.
Asset allocation is the process of deciding what percentage of your money to put into the three major asset classes: stocks, bonds, and cash. These classes can be further broken down into terms of market capitalization (small-cap, mid-cap, and large-cap), style (such as value or growth investing), and international or domestic securities. With asset allocation, a portfolio may experience less fluctuation in value than individual assets within the portfolio. In fact, asset allocation has more influence on variance in portfolio performance than any other single investment decision. This means in times of market volatility, an investor’s overall financial outlook doesn’t have to experience the
same degree of negative impact it may without the proper use of asset allocation.
Asset allocation is important in not only your stock portfolio, but in all investments, such as 401(k)s, IRAs, and college savings plans. When determining what allocation is best for a particular investor, Brad and Jeff will examine factors such as age, goals, current and future income, and personal tolerance for risk.
Implementing an Investment Strategy:
Once the asset allocation mix has been determined, Brad and Jeff help the client select which investment products and vehicles are best designed to help reach the client’s overall objectives. Every investor has different goals and hopes for their investments. However, some common investment objectives may include investing for asset preservation, income, growth, aggressive growth, or a combination of objectives.
Continuous Monitoring:
A periodic review of the progress of each client’s portfolio is a valuable component of Brad and Jeff’s services. Changes in lifestyle, financial goals and circumstances, and investment time horizon can all have an impact on an investor’s asset allocation plan. Therefore, Brad and Jeff periodically meet with each of their clients to help
ensure that their clients are on the right path to meeting their goals.
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