PERSONAL PLANNING STRATEGY

 

 

Every client is an individual with needs and goals specific to his/her situation. Each client has differing goals, time horizons, and risk tolerances. Therefore, the portfolios we manage will have differing balances of stocks, mutual funds, and money market funds.

Our advisors concern themselves with two key issues: The first is how to achieve consistently above average returns without exposing a client to an uncomfortable level of risk. The second is how to make sure that each client has accumulated the most assets possible toward a comfortable retirement.

We believe investing in the equities market is the only proven way over time to have your money grow. Real long-term growth, growth that is greater than the assured losses brought by taxes and inflation. It cannot be obtained from bank deposits, money markets or bonds. As you get older, priorities sometimes change. Producing income and protecting the assets that you have accumulated can become more important. In that case, the amount you place in stocks can, and likely will, decline. 

What percentage of your portfolio should be in equities? That issue is entirely related to how much uncertainty and fluctuation you are willing to bear and how much money you need to accumulate to support yourself in retirement. Keep in mind most retirees live longer than they generally believe they will. Today the average 65-year-old will live another 15 to 20 years, nearly a decade longer than the previous generation. So the point is that you may need to accumulate more than you think.