Investment portfolios should be customized to the individual family unit. Your financial situation is much different than your neighbor’s. They have different goals, lifestyles, tax situations, combination of investment accounts, levels of savings, net worth, feelings about risks and rewards, and may be a different age. In light of this reality, the following points outline the investment management framework at FinancialFamilies…
- Taxes have a material impact on investment returns and vary with investment options and account types.
- Stocks can both propel financial achievement and exhibit volatility.
- Volatility makes investors nervous. Nervous investors make emotional decisions. Emotional decisions can be quite costly.
- Treasury securities have held up better than the broad bond market, and other asset classes, when stocks have struggled.
- Volatility management helps families relax and schedule financial achievement.
- Scheduled financial achievement helps to set attainable milestones.
- Your family saves money to spend it someday. The investment portfolio is only a small piece of the larger puzzle.
- A retainer fee structure best supports a fiduciary duty to provide financial advice in the best interest of your family.