Since every client has different goals, we do not have a “typical” client portfolio. Instead, each portfolio reflects the time horizon, return objectives, risk tolerance, and personal goals of each client. And though we cannot show a typical client portfolio, we can discuss the performance of the mutual funds we have used over time, and how they have performed in relation to our benchmarks.
One of the major things you will learn from working with us is that performance is not the primary concern for a successful portfolio. The crucial factor is for you to achieve your financial goals. Risk and time horizon determine your portfolio design, which in turn affect performance. Risk is the degree of volatility of your investment returns. When we design your investment plan, we help you choose a level of risk that you are comfortable with, and we implement the plan using asset allocation principles. Asset allocation does not maximize a portfolio’s total return, but it does help clients reach their goals with an appropriate level of risk. Assets needed to fund lifestyle expenses and major purchases within the next five years will not be invested in the market. Instead, we will carve out a reserve for these expenditures.
Our firm’s goal is to help our clients plan well so they sleep well at night and achieve their goals.