Invest to Meet Stated Goals and Objects
After a True North Financial Advisor has a clear understanding of a client’s financial planning goals and objectives, time horizons, and risk tolerance profile; an investment strategy can be developed. Next, an analysis of currently held assets must be evaluated to determine which assets to retain and what additional assets should be added to the portfolio. Development of an investment strategy to meet your stated financial goals and objectives requires development of an:
An investment strategy must be developed for each specific goal with funds earmarked for each purpose. The specific goal will have an associated risk tolerance and time horizon that control how the earmarked funds are to be invested with its own asset allocation model. The importance of the goal and the associated time horizon will help prioritize the funding of the financial goals.
Based on the expected returns of each asset class and their respective proportions held in the investment portfolio, the projected funding of the financial goals can be calculated. Through a process of continuous monitoring, adjustments are made to the asset allocations based on the investment policy statement directives. Asset allocation changes might be required as a result of changes in personal circumstances, tax legislation or market conditions.
A True North Financial Advisor can provide the direction and advice to keep your investments focused on the path towards your True North.
