INVESTMENT GOALS

Why are you investing? What are you trying to accomplish? This is where we start.

Maybe you are investing to provide a secure retirement for you and your spouse. Maybe sending a child or grandchild to college is important to you. Buying a home, starting a business, travel, or helping others are all possible investment goals.

We will work with you to identify and clarify your goals. Once we know where you are, and where you want to go, we can design an investment strategy that will increase your odds of getting there.

RISK & RETURN

There are several different types of risk. Most clients think of risk as the maximum expected loss. Advisors often think of risk as volatility. Interest rate risk, credit risk and the risk of inflation or loss of purchasing power must also be considered.

Your risk tolerance and the return that you require or need from your portfolio are a couple of the most important factors we consider when designing your investment strategy.

INVESTMENT PROCESS

At FinancialEdge.net, we believe that no one can accurately predict short-term market movements. Therefore, we use a process that we call Asset Class Management to handle your portfolio. That means:

• We will work with you to determine an appropriate risk/return profile. You should take the risk necessary to meet your goals, but should not take any more risk than necessary.
• Once we have an appropriate profile, we will create a customized investment strategy that takes into consideration your cash flow and liquidity needs.
• We will then implement the strategy by diversifying your assets across several asset classes using low-cost index funds. We will utilize either exchange-traded funds or institutional class shares of mutual funds.
• Your portfolio will be monitored on a continual basis. When the movements of the markets change the percentage allocated to the asset classes, we will rebalance as needed to keep your risk/reward profile intact.

INVESTMENT POLICY

Your Investment Policy Statement (IPS) is the written agreement between you and your advisor that details how your portfolio will be managed and evaluated. The document is updated as needed, to reflect any changes in your goals or personal financial situation.

Your IPS will take into consideration the time horizon for your portfolio, expected risk and return, investment vehicles that will be used and any constraints, and the reports that you will receive to measure how you are doing.