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Investment Objectives:During our initial discussion we will spend time discussing your short and long-term financial goals and objectives. Understanding the role that your investments play in your current and future cash flow, and where you are in the 'accumulation-income generation-preservation-distribution' cycle is essential to matching your investment goals to your investment portfolio.
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Risk Profile.Using a model risk analysis profile questionnaire we will have a discussion regarding risk-reward, time horizon for investments and return expectations.
Asset Allocation.The results of the risk analysis model will provide information that I will use to develop a suitable investment portfolio. A portfolio comprised of investment asset categories that will provide you with an investment portfolio designed to help you achieve your investment goals and objectives. -
Portfolio Design.Whether your portfolio is being designed for long term capital appreciation or the generation of income, selecting the investments to build your portfolio is an important step in developing a suitable investment strategy. There are a number of alternatives that will be discussed and explored as a part of this process, and I will help you to determine which is suitable for your needs. Mutual Funds, Managed Accounts, Wrap Accounts, Individual Securities, Bank Products, Annuities, Insurance Products may all have a place in your portfolio. It is at this step in the process that we focus on which is suitable for your specific needs.
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Portfolio Review and Reporting.Performance of the investment portfolio relative to your stated objectives and the investment marketplace and the broad economy helps you to keep your investment portfolio and decisions in perspective. We establish a timeframe to meet and discuss whether you are on track and making strides to achieve your investment objectives.
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This investment planning and management process is used to help you keep your future financial goals and investment objectives in focus and establish a clear set of milestones that you can use to track your progress as you pursue your financial goals and objectives.
FAQs
The Investment Planning and Management Process? ›
Summary. This investment planning and management process is used to help you keep your future financial goals and investment objectives in focus and establish a clear set of milestones that you can use to track your progress as you pursue your financial goals and objectives.
What is the process of investment planning? ›It is a process that includes analysis of the current financial situation, investment goals, asset allocation, investment strategy, management and rebalancing of the portfolio to generate maximum returns.
What is the investment management process? ›They research potential investments, monitor existing investments' performance, analyse market trends, create investment plans tailored to individual clients, and recommend changes or adjustments to help meet their long-term goals.
What is investment management planning? ›Investment planning is the process of identifying your financial goals and making a strategy to achieve them. Investment planning starts with assessing your financial goals and making a list of your goals and ends with investment and regular portfolio monitoring.
How many steps are in the investment planning process? ›If any action is overlooked, it could mean postponing your dream retirement or having to rethink your entire financial future and plans. There are seven crucial steps that you and a financial advisor need to take to make the whole process successful.
What is the role of investment planning? ›Investment planning helps you grow your hard-earned money for your future financial goals. It is important to have a proper investment plan in place that aligns with your financial objectives, risk tolerance, income and requirements. Additionally, you must keep in mind that investing always carries some level of risk.
What is a common mistake made in investment management? ›Common investing mistakes include not doing enough research, reacting emotionally, not diversifying your portfolio, not having investment goals, not understanding your risk tolerance, only looking at short-term returns, and not paying attention to fees.
What are the elements of investment management? ›Any investment process must involve planning, organization, leadership and control to some extent in order to be considered managed. However, any of these four elements can be done well or poorly, and this will impact returns.
What are the golden rules of investment? ›Hold your investments long-term. Like adding to your investment over time, holding your investment long-term is really important to building your wealth, generating more profit. Your money needs years to grow, and with time, it can grow exponentially and generate higher returns.
What are basic investment strategies? ›Buy and hold. A buy-and-hold strategy is a classic that's proven itself over and over. With this strategy you do exactly what the name suggests: you buy an investment and then hold it indefinitely. Ideally, you'll never sell the investment, but you should look to own it for at least three to five years.
What is investment management example? ›
Investment management is the maintenance of an investment portfolio, or a collection of financial assets. It can include purchasing and selling assets, creating short- or long-term investment strategies, overseeing a portfolio's asset allocation and developing a tax strategy.
What is the difference between financial planning and investment planning? ›Financial planners are great at creating comprehensive plans with detailed explanations of goals, risk tolerance, risk aversion, timeline and expected return. And investment managers excel at finding investments that meet specific criteria such as risk level or long-term growth potential.
What are the four steps in the portfolio management process? ›- Step 1: Assess the Current Situation.
- Step 2: Establish Investment Goals.
- Step 3: Determine Asset Allocation.
- Step 4: Select Investment Options.
- Step 5: Measure and Rebalance.
Once you know that, you can start to build an investment strategy that will help you reach your objective with the least amount of risk possible. We find that most successful approaches include these four elements: effective diversification, active management of asset allocation, cost efficiency and tax efficiency.