Assessing a Client’s Risk Tolerance

By accurately predicting a client’s risk tolerance  -- and, therefore, their investment behavior – we can design a portfolio strategy with more confidence that our client will stick with it over the course of the plan.  

To begin, we hold conversations with clients.  We also know that a variety of questionnaires available to help in this assessment.

Investment Risk - What It Is, How to Cope

“Risk” may be an inherently worrisome word, yet it is a key factor to consider when building a portfolio designed to meet one’s objectives.  Our next several blogs will define risk in several of its varied forms, and discuss strategies to address it.

Risk Tolerance vs. Risk Capacity

An initial challenge in addressing risk in a client’s portfolio is the simple fact that “risk” is not very well defined, and it presents itself in several forms.

Additional Keys to More Successful Investing

In addition to long-term compounding and riding out market volatility, which I talked about in my last blog, there are a few more strategies that may help you reach your objective of maximizing gains and minimizing losses.

Asset allocation

Asset allocation means spreading one’s dollars over several categories of investments, known as asset classes.   Among the most common are stocks, bonds, and cash. 

Keys to More Successful Investing

The basic objective of an investment portfolio is to maximize gains and minimize losses, and some key strategies and tactics exist that may help do just that. 

Long-term Compounding

The A, R, and T of an Investment Portfolio SMART Goal

A successful investment portfolio begins with SMART goals – objectives that are Specific, Measurable, Attainable, Realistic, and Time-Bound.

Our last blog noted that the more specific the goal, the easier it is to measure whether it has been achieved.

Specificity is a highly important factor in sound portfolio goals, but those goals would have little chance of being accomplished if they were not also attainable and realistic.   These latter two attributes go hand-in-hand and must be acknowledged at the outset of the goal-setting process. 

A Sound Investment Portfolio Starts with S.M.A.R.T Goals

Virtually all clients who work with us at Thorley Wealth Management to develop investment portfolios have three common objectives.  In simple terms, they want to make money, not lose their principal, and not pay an undue amount of taxes. 

Record Retention: What Records Do You Need to Keep?

We all have various documents and records that are too important to keep in an ordinary file drawer.   These might be for tax, insurance or investment purposes, and we understand the need to retain them in a safe and secure place. The question arises, however, as to just how long we need to hold on to these records.  We recommend designating the documents in one of three categories:  short term (1-3 years), medium term (6-7 years) and long term (indefinitely). 

You Should Have a Password Manager

A 2015 Dashland blog post noted that the average American has 130 online accounts, and prudent security would suggest that each of these have a unique, strong password.

The Benefits of a Digital Estate Planning Organizer

Most of our clients have made estate plans to dispose of their tangible property after they are gone. Today, however, most people also have a good deal of intangible property to deal with -- things like online accounts for banking, payment, retail, social media, email, and even for our websites and blogs.

Organize Your Documents

We all have dozens of important personal documents.   We may access some routinely, others once in a while, and others perhaps not for years.  Yet it’s important for us – and for others we designate – to know where these documents reside.  Are they in a safe deposit box?  A file drawer?  The household safe?