Client Statements

Investment Planning

With the tools available today, investment selection is easy. Investment planning however is difficult. What makes investment planning so very difficult is dealing with people emotions around money. The single most important element of investment planning is identifying the appropriate level of investment volatility or risk. There is a very direct relationship between investment risk and investment reward. Finding a balance between the investment growth needed and the investor’s comfort level with risk is critical. While many factors must be considered, we feel that the two most important factors are the investment time horizon and ‘the sleep factor’ (what level of volatility will allow me to sleep at night without worrying about my finances?) While selecting an investment is not difficult, assessing some of the soft issues surrounding investor psychology can be very difficult. This is further complicated when there are several family members involved.

Simply put, investment planning is about setting expectations around the dollars that you have accumulated or will accumulate over your lifetime.

What rate is likely?
How much could I make or lose over night or over one or three year period?
How much is enough?

This is impossible to do without a very good financial plan.