Investment Planning is a critical component to a comprehensive, customized financial plan. Good investment planning can turn your goals from dreams into realities. This planning involves more than trying to pick the "right" investments. How you allocate your money among different types of investments can have a greater effect on investment success than the individual investments you choose. So, your first step in investing toward your goals is to work out an asset allocation for your investments.
Asset Allocation: Very simply, asset allocation is the process of deciding what percentage of your money to put in the different investment classes: stocks, bonds, money market, and other investments, such as real estate. Your asset allocation will depend on your investment time frame, your savings goal, and how much risk you are willing to take to achieve that goal.
Diversification: After you decide on an asset allocation, the next step is to diversify your money within the different investment classes. By putting your money in numerous different investments, you spread the risk - rather than invest in one stock, you might invest in a variety of stocks. That way, if one stock performs poorly, it represents a smaller portion of your overall stock portfolio.
During your portfolio review, we apply intelligent investing techniques and an objective analysis before making any recommendations. As fee-only investment advisors we are compensated exclusively by you, our clients, allowing us to make recommendations solely in your best interest.
Contact MTR Financial Services, LLC for a complimentary review of your investment portfolio.