There are not many more things that are more important than being properly allocated. As the term properly allocated may seem like a simple term, it is not by any means. One has to truly understand where they currently stand and where they want to be financially to start this process. As many advisors outsource their portfolio management, we at Rock Martin build each portfolio from scratch. We believe that this creates value to the client as everything - even their portfolio - is designed specifically for them.
Our approach recognizes that investment markets are tools to make money over time. How much of the market we participate in depends on the following: the client’s investment objectives, what rate of return they need to meet their goals, and what kind of volatility to foresee for such a desired return. Some people find out their wanted return is much higher than their needed, and vice versa. This is normal and expected and many clients adjust their wanted return one way or the other based after this analysis. This helps them have a clearer objective, a better risk awareness, and return expectations based on their accepted risk.
Lastly we construct a portfolio based on many variables to meet the clients risk adjusted return over time. Educating the client on why they are invested the way they are and why sticking to the plan is important is a continuous process. We found that once a client understands their allocation they are less likely to make emotional decisions that would negatively impact their investments over time. We monitor, measure, and rebalance the investments and make adjustments if anything in the economy or the client’s goals change.
Re-balancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.
