Investment Process
Successful investing is never haphazard. An orderly approach is necessary for effective management of your investments, a step-by-step process subject to review and revision.
- Identify your goals
- Identify needs to draw on your investments, both now and in the future
- Assess tolerance for risk and discuss time horizon
- Establish income targets
- Review investment preferences
- Design your portfolio
- Identify investment strategy
- Establish asset allocation (diversification) targets
- Discuss portfolio plans with you
- Construct your portfolio
- Construct diversified portfolios for both brokerage and retirement accounts
- Combine asset classes and securities in appropriate proportions
- Manage your portfolio
- Monitor overall portfolio and individual security performance.
- Utilize tax minimization strategies where appropriate
- Rebalance holdings where necessary
- Replace securities that fail to meet objectives
- Evaluate and discuss
- Examine the investment markets for new ideas
- Monitor changing trends, market conditions, and legislation
- Communicate and discuss
- Adjust and adapt with your changing circumstances
Active management of workplace retirement plans. The largest investment accounts for many working age individuals and couples consist of workplace retirement savings plans (401(k), 403(b), etc.). Jonathan D. Pond, LLC can actively manage your workplace plans. Managing workplace plans in your portfolio gives us the ability to make asset allocation and investments decisions based on the totality of your investment holdings.
Don't fall prey to human nature!
There's an inherent danger in following the opinions of those who purport to know about the future of the economy, the investments markets, or any other condition, for that matter.
The problem is that people tend to form their opinions and then wait until they hear others state the same opinion. Once their own view is supported, they are convinced that the truth has been divined and act accordingly.
But as you have probably found — or will discover — actions may not reap the rewards you or your fellow opinion-sharers predicted. There is nothing that worries us more than people who are convinced that some future event is inevitable, whether it's gold going to $6,000 an ounce or the stock market falling 60%. Might happen, but it probably won't.
