Investment Planning

When considering the future and the work that your money can do for you, it can often seem overwhelming to understand different types of investment strategies and which choices would be best for your individual situation. Working with an advisor for Investment Planning in Orlando, FL, allows you to collaborate with an educated professional to define and achieve your financial goals. 

Investing is a significant first step towards building wealth and the nest egg you need for the future. It is often one facet of a comprehensive plan for retirement as you establish financial goals and begin an effective pursuit of these goals. 

Once choice you will have to make is active or passive investments, and often this fundamental choice is the difference-maker in a portfolio’s performance. The most significant factor to your success with either an active or passive investment strategy is the market climate. When you work with a knowledgeable advisor, they can help you see the merits of both approaches, the principles behind each, and which one would be suitable for your situation. 

A passive asset management strategy takes investment vehicles that mirror the benchmarks found in the current market. Component for component, these funds are comprised to match an index like the S&P 500 or the Russell 1000. The results you will see are your passive managed fund matching the return of the index. 

The benefits of owning a passively managed investment include always knowing what you own and knowing that your investment will never underperform your selected benchmark. The drawbacks include never overperforming the chosen benchmark and a particular risk in a sideways or slumping market for your chosen investments. 

With active investments, you are attempting to exceed the benchmarks as you seek to capitalize on the economic trends that affect specific market sectors. The strategy includes overweighting your portfolio in sectors that are performing well while underweighting in sectors that are not. This way, your portfolio can theoretically benefit from these more significant performing sectors to achieve a better overall return. 

The benefits of a well-timed portfolio are greater than you would find in passive investments. However, it is crucial to collaborate with an advisor who has access to highly sophisticated analytics, the knowledge to adjust investment allocations in response to price movements, and an understanding of price movements, macroeconomics, and sector-specific trends. The drawback with active investment is that often you might see as many subpar years as excellent years.

If you’re interested in hearing about the approach our office takes and how it may apply to you, reach out to us today to set up an introductory call.

As you can see, selecting a personalized portfolio is an exciting and intricate process. As you work with a qualified advisor, you will benefit from having your portfolio of investments managed with a Fiduciary Standard of Care. A Fiduciary Standard of Care means that we are legally bound to put your needs above our own. Some criteria that should be examined before a managed investment is chosen may include, but certainly is not limited to the following:

• Style consistency
• Organizational stability
• Investment assets
• Performance relative to peers
• Risk-adjusted performance relative to peers
• Expense fees/ratios relative to peers
• Composition consistent with an asset class
• Track record
• Regulatory oversight

With appropriate trend and stability analysis, an appropriate screen for fundamentals, news, earnings releases, and sector strength, combined with the knowledge of an independent Registered Investment Advisor, you can be confident in your path for Investment Planning in Orlando, FL. Remember, time is your best asset, so do not delay planning for your future. Reach out for assistance from a qualified advisor and get started today.