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Personalize Your Portfolio

Defining your goals, comfort-level with risk, and investment time horizon can help you choose an investment strategy best suited to you. Learn more here.

Whenever you review your personal investment portfolio you should have both your long- and short-term goals in mind. As you go through life, you’ll find that your goals are always changing or being modified to reflect your current planning situation—such as funding a child’s education, buying a new house, starting a business, or planning for an early retirement.

Personalizing a portfolio simply means that your choices for savings and investments will be based on specific criteria tailored to you and/or your family’s short- and/or long-term goals. You can develop a strategy that creates a feeling of comfort depending on your risk tolerance, time frame, and your objectives.

There is always a balancing act going on between risk and reward. The general theory is that the more risk a person is willing to accept, the greater potential for return. The converse is also possible. If you lower your risks, then your potential return may be lower. Also, over time, certain factors and conditions may cause your overall risk tolerance to change.

From a safety standpoint, most people incorporate diversification of assets into their overall investment and saving strategy. It is the old adage, “don’t put all your eggs in one basket.” Another fundamental question about portfolio planning emphasizes this point: once a person decides to diversify his or her portfolio, what percentage of his or her investments and savings should go into each asset category (a process known as asset allocation)?

Note that there is no “best time to buy or sell investments” because it is virtually impossible to predict the direction of gain or loss. Therefore, many people decide to be consistent by choosing to set aside a specific amount over a period of time to be invested regularly. Typically, people put aside money monthly for saving and investing. Over the long term, the value of specific assets will increase or decrease. Thus, more of an investment can be had for less money and vice versa. This concept is known as dollar cost averaging.

Your personalized portfolio is created based on your needs and is not frozen but always evolving.

Schedule a consultation or review with a member of our team.