Risk management for individuals is a key element of life-cycle finance, which recognizes that as investors age, the fundamental nature of their total wealth evolves, as do the risks that they face. Life-cycle finance is concerned with helping investors achieve their goals, including an adequate retirement income, by taking a holistic view of the individual’s financial situation as he or she moves through life. Individuals are exposed to a range of risks over their lives: They may become disabled, suffer a prolonged illness, die prematurely, or outlive their resources. In addition, from an investment perspective, the assets of individuals could decline in value or provide an inadequate return in relation to financial needs and aspirations. All of these risks have two things in common: They are typically random, and they can result in financial hardship without an appropriate risk management strategy. Risk management for individuals is distinct from risk management for corporations given the distinctive characteristics of households, which include the finite and unknown lifespan of individuals, the frequent preference for stable spending among individuals, and the desire to pass on wealth to heirs (i.e., through bequests). To protect against unexpected financial hardships, risks must be identified, market and non-market solutions considered, and a plan developed and implemented. A well-constructed plan for risk management will involve the selection of financial products and investment strategies that fit an individual’s financial goals and mitigate the risk of shortfalls.
It’s been said: What you sow, so shall you reap! When it comes to enjoying the fruits of your investment, truer words were never spoken. Even if you don’t have thousands of dollars to invest, simply taking the time deciding where to “park” the money until you need it can be a rewarding investment management exercise.
How your money grows, what you pay for that growth, and the ease and comfort with which you “journey” towards reaping the rewards of your investments, are all important aspects of a good investment plan. In the absence of such a plan, your financial future could be in jeopardy!
Our Investment Management service is based on these simple facts: Market timing doesn’t work! Creating and preserving wealth needs diversification! Focus on the long-term, and don’t let short-term diversions distract you! Investing is about more than just making money – it’s also about helping you achieve your financial goals!
Here’s a preview of what our Investment Management service covers:
UNDERSTANDING YOUR FINANCIAL GOALS: Through an intense yet structured “Getting to Know You” process, we’ll understand what your financial goals are, and we’ll help you prioritize some of the most pressing short, medium and long-term financial objectives you’d like to accomplish.
ANALYZE A POINT-IN-TIME SNAPSHOT: The next step is to analyze where you are today, in terms of your savings and current investment portfolio. Sometimes, this phase of our review results in actionable steps that can immediately benefit you – like cutting your losses in a sinking investment, or leveraging some profit-harvesting and tax-selling opportunities in highly successful ones.
PROPOSING A INVESTMENT STRATEGY: With that information in hand, we can draw-up comprehensive personalized investment strategies that will help you reach your financial objectives. This may be accomplished by building upon your existing portfolio, or proposing a set of cost-effective, tax-efficient, age-appropriate, risk-averse investments that are aligned with your personal financial goals.
IMPLEMENTING THE PLAN: Our Investment Planning approach is dynamic, and constantly evolves with your changing circumstances. We’ll guide and advise you on investment plan transitions as you go through life and life-style changes.
WATCHING OVER YOUR INVESTMENTS: We’ll monitor and review your investments, plans and strategies in light of changing investment climates.
CONSULT, ADVISE & COUNSEL: Ours is an ongoing partnership. Throughout our relationship with you, we’ll keep you informed, and communicate constantly with you about proposed changes and potential risks or opportunities for your investments.
