New clients often ask me if their current portfolio has the appropriate amount of diversification. After reviewing their investment statements, in many cases my response is “no”.
Successful investors have always understood the importance of diversification. In the simplest of terms, diversification is spreading your money across several different types of investments in effort to decrease the overall risk of your portfolio. Owning different investments over time helps individual investors avoid financial distress if one of their investments underperforms and decreases in value.
In my opinion, diversification is more important today than in recent history. We are in an environment of historic stock market highs and historic interest rate lows. Today, I am having different conversations with clients than I was 5 years ago. In order for my clients to be successful in the future we need to consider new investment strategies.
Large investors like pension funds, institutions and endowments are investing their money differently today than they have in the past. Their portfolios are no longer just a mix of stocks and bonds. They include additional assets classes like real estate and private equity amongst others. Individuals and families should be doing the same. Traditionally, investors felt comfortable owning several mutual funds and maybe a few stocks. This type of portfolio seems to be diversified but I know my clients need more.
At Granite Bridge Wealth Management, we spend a significant amount of time throughout the year making sure that we are continuing to offer our clients up-to-date, high quality investments. We feel that our clients enjoy the confidence our portfolios provide to themselves and their families.
Let’s face it, life is busy. We are all juggling demanding careers, busy family schedules, maintaining our homes, etc. I believe we also owe it to ourselves to make sure that our important money is invested appropriately for the current economic environment and our futures. We provide our clients with a thorough semi-annual portfolio review. Portfolio reviews are a lot like your annual physical with your doctor. We review your portfolio to make sure that everything is healthy and operating properly so that you have a clear path for your personal goals.
I hope these three steps help you become more confident with your retirement!
Wishing You Success!
Knox Grove Financial, LLC is independent of Signator Investors, Inc., Registered Representative/Securities and Investment Advisory Services offered through Signator Investors Inc., Member FINRA, SIPC., a Registered Investment Adviser 290 West Mount Pleasant Ave.,Suite 2300, Livingston, NJ 07039 (973)994-0100