The Wealth Management PROCESS & TOOLS |
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Assessing your goals - We believe the foundation of a solid relationship begins with a plan. A plan allows us an opportunity to have a clear understanding of the clients goals and objectives permitting us to develop a strategy. |
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Allocating Assets |
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WHAT IS ASSET ALLOCATION? |
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Asset allocation is a risk management strategy that helps reduce the effects of market fluctuations by recognizing and balancing the different characteristics of stocks, bonds and cash in relation to your goals and tolerance for investment risk. |
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WHEN DO YOU NEED ASSET ALLOCATION? |
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Anyone wishing to construct a well-balanced investment portfolio suitable for their goals, time frame and risk tolerance should consider developing an asset allocation strategy as a first step |
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WHAT ARE THE BENEFITS OF ASSET ALLOCATION? |
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Reduce volatility over time: |
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Asset allocation takes into account the different ways that stocks, bonds and cash have performed historically and uses those characteristics to improve the chances of achieving a desired total return over the long term. |
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Stocks, bonds and cash do not usually gain or lose value concurrently, so having all three in a portfolio can reduce volatility over time by offsetting setbacks in one category through gains in another. |
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Identify your goals, time frame and tolerance for risk |
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How you allocate your assets in each investment category is a personal decision based on a thorough review of your own investment goals, time horizon and tolerance for risk. |
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If you have more than one investment goal, you may be willing to assume different levels of risk and volatility to achieve these goals. However, in all cases they should be consistent with your tolerance for risk. |
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Determine your investor profile |
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After establishing your short- and long-term goals, recommendations are made based on the clients risk parameters and time frame. Portfolio’s are classified in one of the following profiles: |
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- Capital Preservation – A mixture of cash and short term fixed income securities
- Income – A mixture of cash and fixed income securities with various maturities
- Income/Growth – a combination of cash, fixed income, and stocks
- Growth and Aggressive Growth. – a combination of fixed income and greater allocation of stocks. This portfolio has greater return potential accepting greater portfolio volatility
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Tracking Progress |
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Clients receive a monthly portfolio statement as well as have access to online portfolio viewing. Times change. Markets change. Life events change your goals. National Wealth Management, LLC will work with you to make changes in your portfolio management based on these changes |
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