At Future Wealth, when we look Portfolio Management, we do not restrict ourselves to your stocks and bond holdings. Instead, we take a broader view to determine the right balance of all investments. This includes your stocks and bonds, your cash position and bank holdings such as CD’s as well as your real estate holdings like primary home, rental properties, vacation home etc.
The primary purpose of portfolio management as we see it to ensure that investors are not over exposed in any one sector and instead a have suitable mix of investments that matches their risk profile and financial goals. Using software tools and our expertise, we help you can help you select the right options for your portfolio.
Modern portfolio theory suggests that an asset’s risk and return should not be assessed by itself, but by how it contributes to a portfolio’s overall risk and return. This is a key concept in that an investor may own some risky investments as long as that risk is offset by other instruments in his/her portfolio. An example could be partial ownership of a gold mine (very risky) offset by security of treasury bills (very safe). Likewise, we look at liquidity of the overall portfolio and not just a single asset in determining the suitability of an investment.
In summary, we take everything into account and walk you through every step of the process along the way so that you can invest with confidence. This is all done in such a way so as to minimize your risk, while maximizing your long-term rewards.
For more information, contact our offices in Los Gatos, CA for a consultation.