Risk versus time. In terms of achieving your financial goals, age and life expectancy are two key factors that should drive your investment strategy, as they determine your investment time horizon—the amount of time you intend to hold an investment. Obviously, the more time you have, the more risks you can afford to take, since you’ll have more time to recover from any potential losses.
By developing a diversified portfolio emphasizing value and income, we can help maximize your potential returns by prioritizing your financial goals and risk tolerance with your investment time horizon. And because that horizon changes, we’ll periodically re-evaluate to meet your needs. Investment strategies should vary based on age group and risk tolerance.
Choosing the right investment advisor in developing investment strategies can be a very important factor before moving forward. It is important to determine if the investment advisor you are working with or interviewing has the a level of experience, knowledge, and a clean background with which you are comfortable. Just as important, you should also make sure that your investment advisor is fee-only and fully independent. Hiring a fee-only investment advisor will help remove many of the conflicts of interest that an advisor may have in designing your investment strategies.