You are more experienced now, your bank account is larger, and it is easier to think further ahead.
Careful investment analysis is necessary to ensure that you have the correct asset allocation according to your objectives and risk tolerance.
Long term investment returns are always directly determined by the types of assets held in an investor's investment. An ideal investment mix can only be determined by first assessing a variety of critical factors such as: risk tolerance, personal income level, age range and investing time horizon. Depending on these various factors, a investment mix (equities vs fixed income vs cash) can be determined to provide the highest possible probability of achieving a desired long-term rate of return while at the same time minimizing short-term financial risks.
Investment Analysis is the process by which an existing investment asset allocation is reviewed to determine whether the current allocation achieves the investor's short and long term financial goals without taking unnecessary capital risks. To achieve an optimal investment asset allocation, the individual investor must balance their investment goals with their risk tolerance. Owning growth-oriented assets is essential to help offset the long-term risk of inflation, but the rewards of growth also involve the short-term risks of enduring market volatility and uncertainty.
The analysis of an individual investment is best conducted by a professional who has the required knowledge and expertise to properly evaluate all the different variables that affect the long-term performance of different asset classes. Proper investment analysis is important to long-term financial success because each asset class within a investment comes with a different type of short and long term risk.
By measuring an investor's short and long term investment goals against various investment possibilities and return probabilities, a professional advisor can assist an investor in determining the investment mix best suited to their unique situation.
Call our office today if you have questions about your own investment asset allocation.
You are more experienced now, your bank account is larger, and it is easier to think further ahead.
Without barely a moment’s thought, you would protect your family from an immediate threat.
Do you ever feel like life is too automated? Maybe you’re suspicious of the cruise control feature on your car.
You have worked all your life and saved for retirement. What other planning work could possibly be left?
