A sound investment management strategy is an integral step towards achieving Confidence in Retirement.
Investing should be easy – just buy low and sell high – but most of us have trouble following that simple advice.
There are principles and strategies that may enable you to put together an investment portfolio reflecting your risk tolerance, time horizon, and goals.
Understanding these principles and strategies can help you avoid some of the pitfalls that snarl some investors. Our investment management process typically differs from person to person but a few steps in the process include:
Assess Your Current Risk and Diversification
As part of evaluating a new client’s portfolio, the advisors at Stoddard Financial will model the historical risk and return of their portfolio compared to one of our recommended portfolios. We can then review an estimate of past comparable portfolio risk and return in order to discuss how you want to be positioned going forward.
While past performance of any portfolio’s risk and return is no indication of how it will perform in the future, it can inform us about how your current portfolio performed previously.
Provide a Custom or Model Investment Solution
We have seven model investment solutions that will accommodate most investors appetite for risk. In addition we can create custom model solutions; typically used for taxable accounts with clients bringing in a portfolio with low basis stock. We coordinate any repositioning with your tax plan to make informed, strategic tax decisions.
Review and Monitor Your Portfolio
All fee-based portfolios, whether custom or model, will be set up with previously established “drift” parameters, meaning our portfolio weightings will not stray too far from their target which helps keep your portfolio closer to your risk preference. All clients have online access to a consolidated review of their portfolio regardless of their number of accounts.
Stress Test Your Existing Portfolio*
What is portfolio stress testing? The Federal Reserve, Wall Street banks, and major hedge funds use stress testing to project their portfolio losses due to various economic events.
We start by asking questions like: What happens if the dollar crashes? If the economy falls back into recession? Or if oil prices sky rocket? We have over 50 scenarios to consider!
Our models measure the impact of these scenarios on your investments, using history as a guide, giving you a clearer picture of the risks to your portfolio.
*This portfolio stress test will simulate hypothetical forward looking scenarios based on historical data including correlations between securities prices, several economic indicators, and forward looking potential impacts of those indicators. The historical losses illustration on the following page, and the portfolio stress test itself, does not constitute comprehensive financial advice, and should not be taken as such. Information in the portfolio stress test can never be comprehensive or a complete statement of the matters discussed or the law relating thereto. The information on this website and in the stress test report is not intended as an offer or recommendation to buy, sell or call on any security, product, service or investment. Neither LPL nor Stoddard Financial, LLC accepts any liability for any investment decisions made on the basis of this information. Please consult the advisors at Stoddard Financial, LLC should you have any questions regarding information contained in this section of our website.