INVESTMENT MANAGEMENT

Investing would be easy if we had a crystal ball – just buy low and sell high right? Unfortunately, no one can predict the future, so we need to put together an investment portfolio that reflects your unique goals, risk tolerance and time horizon.

Lifestyle planning

It is important for clients to be saving towards their goals outside of retirement. Lifestyles matters, from planning for an expanding family, buying a new home, paying for education expenses, or any other goal you may have. Creating a life map involves a close review of personal finances. Investors are often searching for investment options that provide more growth potential than their bank accounts but can be accessed sooner than their retirement accounts that come with an age requirement. A typical tradeoff with investments accounts is liquidity vs tax benefits. It is crucial to match the type of account with the intended use of the funds.

Employer accounts  

A sound approach to investing involves taking a close look at your potential retirement-income sources. Retirement accounts offered through an employer typically have greater contribution limits and potentially offer an employer match. The employer match may come with a vesting schedule, which is the period of time that you must stay working with the company to gain full access to the match. Keep in mind that your employer controls the investment options that the plan offers, which often leads to a limited selection to choose from. Employer accounts typically use a “target date” fund as the default investment, picking the investments based solely on your age and expected retirement date. Since employer accounts do not typically offer a personal advisor, it is important to make sure that these accounts complement your other investments.

Individual retirement accounts

Individual retirement accounts (IRAs) are retirement accounts not tied to an employer, often used by investors to consolidate investments they have from previous jobs or saved on their own. The benefit of IRAs is that there are no limitations on the investment options, providing investors with the ability to have greater diversification and utilize protection focused products that are not available in employer plans. IRAs can be used for both pretax (traditional IRA) and aftertax (Roth IRA) funds. It is important to note that IRAs have more strict eligibility requirements such as income limits and have smaller annual contribution limits compared to employer accounts.

Risk tolerance

The level of risk an investment account should have is based off two factors, your time horizon and your comfortable level with investing. In general, the closer you are towards funding a goal, the more conservative the account should be. However, if you are someone who isn’t comfortable with investing, your long-term goals shouldn’t be funded with aggressive investments if large market swings scare you. It is important to strike the balance between investing for the future while staying within your comfortable level. We’ll perform a risk assessment of your existing portfolio to help identify unnecessary risk.

Asset allocation

While we cannot predict what will happen to the stock market, we can make sure you are positioned appropriately. We believe the most “efficient” portfolio could be inappropriate if it doesn’t allow you to sleep at night. Proper diversification into different asset classes is vital to ensure that your account can take advantage of market upswings while protecting against down markets. We believe determining the right asset allocation is more than simply checking off boxes. At the center of socially responsible investing is choosing investments that are more in alignment with your personal beliefs. Together, we’ll create your portfolio based off your comfort with investing, to ensure that you’re always in the driver's seat.

Tax Efficiency

Taxes are an important part of every financial decision you make and have a significant impact on your overall financial situation. Our team of professionals analyzes your financial situation year-round to identify opportunities for tax optimization, ensuring that you are making informed decisions that align with your long-term goals. We understand that reducing taxes now may not always be the most efficient strategy in the long run. Some taxes can be deferred, and others can be managed through tax-efficient investing. Understanding tax strategies and managing your tax bill should be part of any sound financial approach. By establishing a comprehensive, long-term tax plan, we help you maximize your wealth and minimize unnecessary tax burdens.