Broker Check

Investment Management

There has been a misconception that investing is reserved only for the elite and that you need ample amounts of money to start investing. All the barriers to entry have been eliminated by technology and developments in the financial sector. With all these advancements, there's no excuse not to invest.

Investment Plan

An investment plan is a financial product that allows investors to create wealth for the future by investing in small amounts periodically instead of a lump sum. Factors to consider when making an investment plan include:

Self-Evaluation
You need to evaluate your current financial situation by evaluating your income, average expenses, debt, and emergency fund. Self-evaluation will help you to determine how much you can invest.

Define Your Goals
It would help if you listed your goals for investing. These goals could be toward retirement, owning a house, earning passive income, creating a better future for your family, vacation, or college. It's easier to commit the time and energy it takes to invest when you have a reason to do so.

Pick Investments
There is a wide variety of investments to choose from, so you should decide the ones that best suit your goals.

Investment Portfolio
An investment portfolio is a collection of different assets such as stocks, cash, real estate, cryptocurrencies, or precious metals.

What Are the Main Steps in Building and Managing a Portfolio?

<br data-mce-bogus="1">

Establish Investment Goals

Setting investment goals is an essential factor in building a portfolio. Goals are reasonable to keep you motivated. Distinguish between the long-term and the short-term goals and make a list of them. These goals could change over time, but make sure you can adjust them accordingly.

Determine Your Time Horizon

This is the amount of time you have until you need the money you are investing. It will help if you put a time horizon on each of your goals. Determining a time horizon enables you to establish how much risk you can afford to take.

Evaluate Your Risk Tolerance

Different investments have different risks. The amount of risk you take depends on your time horizon and risk tolerance. If you are taking on more risk, you should expect higher returns.

Investment Strategy

Solo Investing
Solo investing will require you to research potential investments which can be very stressful for beginners looking to get started. There are countless free investing apps today that make it look easy to start on your own, but it can be intimidating if you don't have any experience. Nevertheless, this method is relatively cheap.

Financial Planner
If you are not comfortable going solo, you might consider a financial planner. A good portfolio manager will help you identify the best investment plans and the benefits and risks of each plan. Ed Haro watches the markets daily and adjusts his investment strategies accordingly. Using economic data and statistics, he creates 5 model-portfolios each month (Ed-folios). These template portfolios are created for his clients with the understanding of going forward for 3 months. When it comes to investments, it is best to work with someone who will take the time to get to know your personal needs and goals. Ed understands that everyone is absolutely unique and that no one investment fits everyone.

Asset Allocation
Effective portfolios comprise different assets. Some assets are higher-risk, higher return, higher volatility, such as individual stocks, mutual funds, and REITs. In contrast, others are lower-risk, lower-return, and lower volatility, such as government bonds and certificates of deposit. Younger investors allocate a higher percentage of their portfolios to the stock market. If approaching retirement, it is advisable to consider a more conservative approach such as investing in bonds which act as a defensive way to balance the swings of the aggressive stock index funds.

Client Centered

Diversification
Investing in the S&P 500 Index Fund is an excellent place to start because it allows you to buy shares in the 500 top-performing U.S companies. The best stock market investments on a budget include Exchange Traded Funds (ETFs), with low minimum requirements. Real estate is one of the most popular non-stock investments, making a significant portfolio component as it offers some of the most generous tax benefits. Experts also recommend a small percentage of your portfolio in cryptocurrencies. Geographic diversification through investing in international stocks is also highly recommended.

Performance Evaluation
It would be best to revisit your portfolio a few times a year to ensure it is still in line with your investment goals.

When it comes to investment management, the best practice runs on the principle of selecting the right investment tools in the right proportion to generate optimum returns with minimum risk. As a result, it helps to work with a professional who understands your investment needs and the financial market and can recommend a suitable investment mix to meet your objectives. Contact Haro Financial Services today to learn more.

Let's Review Your Portfolio!

Thank you!
Oops!