Wealth Management

Every client has unique needs and objectives they hope to achieve. With wealth management, we weigh your goals and risk tolerance while addressing your investment needs.

Applying The Wealth Management Strategies photo of business people with stock ticker in background.

Applying The Wealth Management Strategies

Wealth management is only a portion of our process but it forms one of the 7 pillars that are cemented in a single foundation.  There are many parts to wealth management but we dig into a few here including investment strategy and planning, accumulation, alternative investments, and asset allocation.

Investment Planning and Market Volatility

As part of wealth management, investment planning requires a deep understanding of your tolerance for risk and behavioral tendencies, especially during periods of market volatility.  There is power in being able to define how much risk you want, how much you need to take to realize gains, and how much you actually have in your portfolio.  By quantifying that risk with a Risk Number, we can help you manage emotions, cognitive biases, and the natural tendency to take action during market volatility.

Accumulation Planning

Many of our clients want retirement savings accounts they can count on to help maintain the lifestyle they want in retirement.  With today’s low-interest-rate environment, they are looking for a variety of strategies that can help them grow these assets.  Couple that with concerns about market downturns, rising retirement costs from healthcare, and longer life expectancies, and the desire for accumulation planning becomes clear.

Accumulation planning is an aspect of wealth management that requires different expertise than typical stock and bond portfolio implementation.  Accumulation situations usually pertain to employer-related retirement plans and stock options, margin strategies, and real estate exchanges.  The strategy also uses the power of tax deferral.  Throughout our financial relationship, this is one among many strategies you may need as part of the Seven Pillars of Financial Success.

Wealth Management

Alternative Investments

Alternative investments may also be an option for the right investor, thanks to the beneficial diversity they offer.  One of the premier features of alternative investments is diversification, which results from the inclusion of investments that react differently to the markets than more traditional investments.  Managed futures, hedge funds, oil and gas, tax shelters, and real estate are all examples of alternative investments.  Though most investors understand that as risk increases, the potential for return can also increase, these products generally involve substantial risk and limited liquidity.

Asset Allocation and Diversification

Asset Allocation is used in wealth management to distribute your investable assets among a variety of investment categories.  There are three main asset classes which include equities, cash and equivalents, and fixed-income. Over time, each behaves differently and has its own levels of risks and returns.  Asset allocation is a strategy that aims to balance risk and reward by allocating your portfolio’s assets according to your goals, level of risk tolerance, and investment horizon.

There is a benefit of partnering with a wealth management specialist to fully realize the opportunities and help control the risks.  Our goal in asset allocation is to provide you with the risk and return scenario that is most comfortable for you.  Our process aims to:

  • Reduce overall investment risk
  • Create more reliable investment forecasts
  • Improve the risk/return tradeoff of your portfolio

Investors should note that asset allocation and diversification do not assure a profit or protect against loss in declining markets and neither can guarantee that any objective or goal will be achieved.  Alternative investments may be illiquid in nature, redeemed at more or less than the original amount invested, are subject to special risks, and are not suitable for all investors.  There is no assurance that the investment objective will be attained.

Look for additional articles on this topic.

Back to 7 Pillars



Experience our 3P Approach© to financial planning

Get it Now