Many factors go into choosing an investment strategy. The first set of factors begins with you. Our disciplined discovery process is key to understanding the right investment strategy for your specific needs and objectives. Once we have your answers, we begin to think about the second set of factors involved in the overall health of the economy and the financial markets.
Here are questions we ask as we walk you through the investment planning process:
- What is the goal for the funds? Will they be used now or in the future, or do you want to leave them as a legacy? How much will it cost at that time?
- What expectations or risk or reward do you have for these funds?
- What part of your portfolio do the funds represent? What percentage do they represent in your liquid portfolio and overall portfolio?
- Are the funds qualified for tax deferral?
- What is your comfort level with investing, or how much investment expertise do you have? How do you react to large ups and downs in the market?
The initial discovery process has to be thorough, which is why top financial advisors include financial planning, not just investment management, as part of the services they provide. At Bradley Wealth, we believe every client needs a financial plan as the backbone of the process.
Creating a vision will help you see your course more clearly, establish a framework, and ultimately allow you to move closer to your goal.
Once we get to know our clients by walking them through the basics, we decide whether we need to create an asset allocation plan or simply determine where the funds fit within an established plan. To set your path, we ask ourselves:
- What is the current state of the domestic and global economy?
- What is the state of the local economy?
- Where are we in the business/economic cycle?
- How are certain industries and sectors performing relative to each other? Do we see any current cyclical trends?
- What is our team’s overall expectation of and future outlook on the market?
Knowing the amount of risk you can handle is essential to achieving the right mix of stocks, bonds, and other investments for your investment portfolio. By combining factors specific to you and the economy, we are very comfortable in making asset allocation decisions.