The first step in creating an investment plan is to gather information about your financial situation, personal details relevant to investment decisions, your attitude towards risk, and your investment objectives. This information will be used to create a written Investment Policy Statement (IPS), which will outline your risk tolerance, return goals, and important investment parameters, such as your time horizon, liquidity needs, and tax considerations.
One of the key considerations when evaluating the suitability of specific investments is your unique circumstances and your comfort level with risk. As investment professionals, we will take into account the potential for rapid changes in the investment landscape and how these changes might affect your individual securities and overall portfolio. It's important to note that the risk associated with various investment strategies can and should be assessed and quantified beforehand.
We will build an investment portfolio based on your input, aiming to create a well-balanced and diversified mix of asset classes that align with your goals, risk tolerance, and financial objectives. Additionally, some clients may have specific constraints or preferences, such as considerations related to environmental, social, and political factors. Once we identify these factors, we can assess whether a particular investment or strategy is appropriate for your specific investment portfolio.
We will schedule regular client meetings to review your portfolio and assess its alignment with your specific investment objectives. During these meetings, we will update your goals and reassess your risk tolerance. Additionally, we will continuously monitor your holdings and make adjustments as needed. We typically find that annual reviews are adequate, unless there is a significant life-changing event or other factors, such as major shifts in market conditions, that warrant more frequent reviews.