Investment Selection and Portfolio Design

Investment Selection

A master craftsman would use several different tools, each with its own specific function, to construct one’s dream home. Similarly, no one investment or asset class is apt to provide the best solution to meet one’s financial goals and objectives. I provide each of my clients with a recommended strategy in which their portfolio is diversified across a range of asset classes. The recommendation of the proposed strategy takes into consideration that there is a direct relationship between risk and return. Understanding that, exposure to the various dimensions of risk is balanced against the investor’s objectives, their tolerance for risk and its associated volatility.

Implementation

After the relationship between risk and return is understood and appropriate asset allocation has been chosen, the plan is implemented in a fee based investment account. The structure of implementing and maintaining the portfolio in a fee based account, rather than a commission based account, allows for un-biased advice and greater transparency of associated costs.