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Balanced portfolios combine various asset classes and investment strategies to balance an appropriate level of risk with an acceptable level of return. These portfolios are typically comprised of a mix of equities (i.e. stocks) and fixed income (i.e. bonds). Historically, bonds have served three major purposes in balanced portfolios: diversification, capital preservation, and income generation.
Cognitive impairment is a growing reality as we age and can be difficult to either experience firsthand or watch a loved one suffer from, even if they only have mild cognitive impairment. Unfortunately, according to the Alzheimer’s Association website, approximately 12-18% of people age 60 or older are living with mild cognitive impairment, and more than 6 million Americans are affected by Alzheimer’s. Any form of cognitive impairment can put you or your loved one at risk for a financial mishap and undo years of careful planning.
Risk tolerance refers to the amount of loss an investor is prepared to take on when making an investment decision. Everyone has a different level of risk tolerance based on their personal financial situation and stage of life, and this level of tolerance plays a critical role in determining the allocation of your portfolio.
We get this question on a regular basis, usually when the stock in question has recently been in the news and has seen a meaningful move higher in price. When building portfolios, we choose high-quality companies with consistent and predictable earnings through a detailed evaluation process.
It is always the right time to revisit your investment strategy or asset allocation. In fact, we recommend that our clients meet with their advisor on a yearly basis, or following a lifechanging event, to revisit their risk tolerance, update their financial plan, and ensure they are still on track to achieve their goals.
Life insurance serves an essential purpose during your peak earning years. Providing financial support for your loved ones in the event of a premature demise is incredibly valuable. Later in life, the question becomes, “should I keep my life insurance policy?” The answer, like most financial advice, is “It depends.” This article provides general guidance when considering your policy.
As college costs continue to rise (the estimated cost per each year of college at a 4-year public university for today’s newborns is over $50,000 per the College Board, College Cost Calculator), it is important to evaluate different opportunities to save for college and invest sooner than later.
A “good” financial plan is one that is custom to your needs and will create a road map to help you achieve your goals. Depending on your situation, your plan can focus on a few life goals or provide a more comprehensive plan addressing your entire financial situation.
Wealth Management is more than investment management. It considers the larger picture. While your investments are critical to your success throughout retirement, it is also important to understand how your taxes, finanical plan, estate, and insurance can affect both your overall situation. Do you know when you should begin collecting social security to maximize its benefit? Have you followed the necessary steps to help your assets pass efficiently to your heirs, avoiding probate? If 529 plans are applicable to you, have you considered 529 plan superfunding or how to maximize 529 plan tax advantages? Our wealth management Q&As consist of popular topics among our clients and are not limited to investment management.