Wednesday, November 14, 2012, AM | Leave Comment
You know everyone’s financial situation changes. Goals change, too. However, your financial adviser (FA) should be in a position to consider many variables before creating a personal investment strategy for you.
Because a number of factors will determine the appropriate asset allocation for your investment portfolio, your financial adviser usually begins with a private consultation in which he or she must review the following:
Investment portfolio is usually based on your financial assets and liabilities, your current age and your tolerance for risk.
Your Financial Goals
What do you want to accomplish? How much do you want to invest? How long do you have to invest? What is your tolerance for risk?
Developing an Asset Allocation Plan
Creating an investment portfolio by identifying which investment vehicles are most suitable for you is the next step in planning your investment strategy.
Selecting the proper asset allocation is important for maximizing potential returns while spreading your risk among different types of investments.
Your Investment Strategy
Once the financial adviser has done all the homework, it’s time to put your investment strategy to the test. Think of your investment as an extension of yourself, tirelessly working to provide for you and your family.
How Your Strategy is Working Over Time
The Financial Adviser must continue to follow your progress and offer adjustments in your investment strategy that will best respond to market fluctuations or lifestyle changes. It should be a part of the FA commitment to help you maximize your investment potential while protecting you from undue risk.
In a Nutshell
Find a good financial adviser (FA) who can offer you objective, comprehensive advice that will serve you throughout your investment lifetime and can give you customized financial solutions to satisfy your financial needs.
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