Having a well-structured investment portfolio is essential to achieving one’s financial goals and minimizing volatility or risk. Mount Equity Group advisors understand that creating a long-term investment plan can be a daunting process for many. Building an effective investment portfolio involves a precise series of steps that are less daunting when broken down. The first step in planning for your future is taking a thorough assessment of your present.
Where do you stand now in relation to where you want to be? Your advisor will help sift through all your current assets, income and obligations. Then, you’ll clarify your short- and long-term financial goals. The next step is assessing your risk tolerance. What returns do you want your portfolio to generate? How much volatility and risk are you comfortable with? Once a realistic risk-return tradeoff is established, you’ll establish benchmarks to track the performance of your portfolio. At this point, having defined realistic and measurable expectations, your advisor will define the asset allocation strategy that is structured and diversified to maximize returns and minimize risk. This is the starting point: your strategy will adjust over time to accommodate major life changes like buying a home, establishing a business or approaching retirement. The final step in the initial process is selecting specific investments. Now that your portfolio is in place, your advisor will monitor your investments. As time goes on, together you’ll reassess your goals and make appropriate changes.