Investments | CAPITAL BENEFITS

“The Investor of today does not profit from yesterday’s growth”

Warren Buffet

Whether you are retired and living off your assets and / or still accumulate wealth; the world of investing it always seems to come down to RISK vs REWARD. Even if you stuff your money in a sock, you may have little risk of losing your capital, but you have a real risk of purchasing power loss due to inflation. The goal in an investment plan is to pursue your goals with the highest return possible for the risk you are prepared to accept. In order to avoid emotion based buying and selling, which usually costs you money, it is better to have a process and stick to it.

Fixed Income		Equity Investments
	Mutual Funds (income-oriented)		Mutual Funds (growth-oriented)
	Unit Investment Trust		Large Cap Growth/Value Funds
	Municipal and Government Bonds		Small/Mid Cap Growth/Value Funds
	Money Markets		International Equity Funds
			Asset Allocation Funds
			Sector Funds
Investment Accounts (Traditional)		Fee-Based Managed Account

Investing as a Process

Determine your objectives, your risk profile and then invest in a diversified portfolio that reflects your risk profile and objectives. Rebalance regularly. If having an investment strategy was important when you were accumulating for retirement then it is even more important when you are retired. The stock market does indeed go up and down, however, unless you are properly diversified then the effects of a major drop could be devastating.

The Process A conservative investment approach views investing as process that is an important part of a comprehensive financial plan designed to pursue your long-term goals – investment, insurance, tax and estate planning. There are enough books written on “successful investment strategies” to fill several libraries. When you get right down to it though, most of the research indicated that one of the most important component of investment success is diversification or strategic asset allocation.

Diversification seeks to reduce the volatility of a portfolio by investing in a variety of asset classes. Neither asset allocation nor diversification guarantee against market loss or greater or more consistent returns

An investment philosophy that is essentially conservative in nature includes:

	Operating within your risk profile
	A quantitative analysis of your existing portfolio
	An investment approach structured using state-of-the-art research on portfolio design
	An objective of achieving long-term growth with the lowest possible level of risk along the way

Investment Planning – Points to Consider

	What is your investment philosophy and is your portfolio in line with it?
	Does your asset allocation match your risk profile?
	Is your portfolio in line with your investment objectives?
	Do you review your portfolio regularly?
	What if the analysis indicated that you are not properly diversified and your portfolio is down? Should you wait until it comes back? If yes, how long do you stay exposed to the higher risk? If you should not wait, when should you get back into the market?

Each situation is different. Remember, the goal in an investment plan is to pursue your goals with having the highest return possible for the risk you are prepared to accept and that “asset allocation is they most important decision you may have to make.”

Member http://www.finra.org//http://www.sipc.org/
Check the background of this investment professional on FINRA’s BrokerCheck.
Click here for Securities American form CRS
This site is published for residents of the United States and is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security or product that may be referenced herein. Persons mentioned on this website may only offer services and transact business and/or respond to inquiries in states or jurisdictions in which they have been properly registered or are exempt from registration. Not all products and services referenced on this site are available in every state, jurisdiction or from every person listed. Securities offered through Securities America Inc. A registered Broker/Dealer Member http://www.finra.org//http://www.sipc.org/ Advisory Services offered through Securities American Advisors, Inc. Capital Benefits and the Securities America companies are not affiliated.