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Investment Planning

Table of Contents

The Importance of an Investment Plan

Financial independence is the single biggest key to being able to reach important goals and aspirations in life. 

90% of people who have accumulated significant wealth say that they’ve gained the freedom to do more with it.

What’s the way to get there? You need an effective investment plan that not only aligns goals, priorities, and values but also provides protection from unforeseen events that might jeopardize your plan.

The challenge of managing your investments is neverending. Your wealth brings incredible opportunities as well as significant challenges! Investments can be risky, but if managed well, they can also be highly advantageous to your overall financial needs.

Investments extend much further than just monetary gains

Every successful investor must take the necessary step of building a well-thought-out investment plan.

With the proper financial setup, your investment portfolio will empower you to provide for your children’s education, buy your dream home, fund your vacations to amazing destinations, and enjoy total financial freedom.

Part of your comprehensive financial plan, an investment plan maps out your investment strategies to help you meet your short- and long-term financial goals, such as buying your second or third property or retiring by age 55.

For most investors, the task of developing an investment plan feels like a monumentally complex task. Even after learning the terminology, the numerous and sometimes conflicting schools of thought, the investment research, and of course, the actual investment selection, there’s always a chance that you could be ‘missing something.’

Since every investor faces a unique financial situation with differing financial goals, the process of gathering quality data can feel like trying to follow a moving target.

Developing an investment plan can be overwhelming and time-intensive, but having a sound investment strategy is the difference between a life of smooth sailing or choppy waters.

Expert advice can give you more confidence in the protection and growth of your wealth. 

For example, as you begin to invest heavily, taxes will begin to have a negative effect on the real return of your investments. A Wealth Manager is proficient in finding tax-minimizing options that you might have missed. 

If you need to access your funds for another use (for instance, toward an investment property, a large house upgrade, or a partnership in a new business venture), a Wealth Manager can draw down funds in a way that can minimize your tax burden and maximize your bottom line.

A Wealth Manager can help you analyze how different investments or securities may fit into your portfolio for a meticulously crafted investment strategy. 

To begin, every goal-driven investment plan must clarify three fundamental questions: 

  1. What are your financial goals? Start with the end in mind by considering your specific investment objectives. Why is investing important to you? Are you looking for safety, or is rapid growth your top priority? Your goals will help define your investment options.
  2. What is your time horizon? When will you need the money that you plan to invest now? The longer you have to reach your goal, the more risk you can afford to take. As your goals get closer, your investments will shift toward more conservative investments to protect against losses.
  3. What’s your risk tolerance? When investing, don’t make the mistake of focusing too much on how much you can make without also considering your risk capacity. Are you willing to invest in stocks that may have large swings in the short term, but have the potential to deliver larger returns in the long term? Or would you prefer to invest in securities with higher security and lower returns?

The Risk-to-Reward Ratio of Different Investments

The Risk to Reward Ratio of Different Investments

A well-defined target enables you to review, refine, and re-allocate your investments to make sure your investment strategy is congruent with your goals. The first step to financial freedom is mapping a clear outline of your specific financial goals, time horizon, and risk tolerance. 

At Prosperity Financial Group, we understand that investment strategies are unique to each individual—and that If It’s Money, It’s Personal™. When creating your custom investment plan, your Fiduciary Wealth Manager will take your unique circumstances and needs into consideration. You can trust that your investment plan will have the appropriate asset allocation, investment vehicles, and rebalancing tactics for your individual set of financial goals.

Tailoring Your Individual Investment Plan

A cogent investment plan is critical to ensuring that your money continues to grow. 

Your strategy should be informed by:

  • Expertise in investment theory
  • The capital markets
  • How stocks and bonds are traded
  • How the stock market functions
  • How securities are priced
  • And much more.

It takes a deep understanding of the various financial markets well enough to select the right individual investments, which can be a daunting and time-intensive task for individual investors. External factors, like new tax policies or market changes, may also affect your investment strategy. 

And over time, your investing needs, goals, and risk tolerance will change. That requires yet further evaluation for the best steps moving forward.

If you don’t have the time or inclination to evaluate markets and investments, or the time to closely manage your portfolio, consider speaking to a Wealth Advisor whom you trust. 

Especially during times of market volatility, it’s best to seek expert guidance in developing the soundest investment plan possible. Oftentimes, this entails taking a more detailed approach to investing—which allows for better tax-loss harvesting and charitable contribution. Those benefits pale in comparison to having a general, nonspecific portfolio.

At Prosperity Financial Group, we pride ourselves in our consultative, inclusive approach that incorporates your attitudes and goals as an investor so that we can provide the most highly-tailored approach to structuring your portfolio.

What can I expect from my Investment Advisor?

Our Fiduciary Wealth Advisors can help you:

  • Assess your financial situation. We want to understand what’s important to you. In addition to analyzing your investment time horizon and risk tolerance, we’ll help you plan for upcoming life events like real estate purchases, your children’s education, and retirement.
  • Understand all your investing options. Depending on your desired level of involvement, we can teach you about different investment types and accounts to help you make better investment decisions. We take a disciplined, rigorous approach to analyzing the financial markets to discover important investing insights.
  • Apply diversification principles. We’ll help you invest in a variety of assets to distribute and help reduce risk.
  • Allocate your funds. Our expertise in asset allocation, or spreading investments among different asset categories, will also help mitigate risk.
  • Monitor your progress. We’ll check in with you regularly to make sure your investments are still aligned with your current needs and future goals, and reallocate your portfolio as needed.
  • Consider tax implications. Our Wealth Advisors will help guide you toward tax advantages and away from tax consequences so you can avoid paying unnecessary costs.

What is the investment planning process?

Discovery

Before creating your investment plan, our Wealth Advisors will get to know you and your unique financial situation.

Tell me about yourself. What are your biggest financial goals? When would you like to achieve them? 

Tell me about your family. Are you single, married, or divorced? Do you have any kids? Have you begun planning for your children’s college expenses?

Tell me about your work. What do you do? What retirement accounts do you have? Are you part of your company’s pension plan? Why do you go to work every day? What are you working towards? Do you like what you do? Do you see yourself in the same career in the next 5-10 years? Do you plan to go for an advanced degree?

Tell me about your home. Do you rent or own right now? Do you want to own a home? What’s your mortgage like, and when do you want to pay it off? Do you need to manage your mortgage?

Tell me about your investment goals. What’s the money going to be for? Perhaps you’re 10 years out from retirement and you’ll need a reliable stream of income. Maybe you’d like to plan for your children’s first homes and inheritance. Or it could be that you’re a travel bug who wants to enjoy faraway destinations.

Tell me about your unique needs. Everyone has a different set of necessities. Maybe you work in real estate and you need to lease new luxury cars to boost your personal brand. Or it could be that you work 80 hours a week in a highly demanding job so you need to balance your life with an annual 2-week vacation to someplace warm and sunny.

Tell me about your investment personality. Every investor has a different risk tolerance. There’s no such thing as a one-size-fits-all investment formula. No single asset allocation strategy is universally applicable. Your investment strategy, including the financial products you choose, is influenced by your temperament and your individual financial situation.

Execution

After getting to know you, your Wealth Advisor will help you set up your investment accounts, select the right investments for you, and construct a custom portfolio that’s consistent with your goals and investing style.

Optimization

Finally, once your investment plan is set in motion, your portfolio needs ongoing management. As your needs and the investment landscape continue to evolve, your portfolio will require some adjusting. This review can occur monthly, quarterly, semiannually, or annually, depending on your individual portfolio. During these periodic reviews, your portfolio can be rebalanced or redesigned to accommodate changing conditions.

What Can a Wealth Manager Do For You?

Chances are, you have a deeply complex financial background. You might have multiple investment accounts, pension plans, property investments (and mortgages), and you want to plan for the future. However, in trying to achieve your goals in the most sensible way, you might be unsure of how best to structure your investments.

Your time is likely limited, and you’d rather focus your time and energy on your occupation than on managing your investments. 

Between income, capital gains, securities transaction, and corporate taxes, you might find that you’re paying more than you need to. 

In short, you need to optimize your investments—especially from a tax perspective—but have no time or desire to learn tax law.

If you don’t have the time or will to manage all your investments, and want a trusted Fiduciary Advisor to call to accelerate your learning, provide accountability, and help fill in your gaps of knowledge, then a Wealth Manager is what you need.

By consolidating your investment plan into a Fiduciary Wealth Manager’s care, you can offload the stress of investing and achieve peace of mind for you and your family.

“An investment in knowledge pays the most interest.”
Benjamin Franklin
Ben Franklin
Founding Father, Political Philosopher, Certified Genius

By relying on the expert guidance of a Wealth Manager, you’re making an investment in your Wealth Manager’s extensive financial education and deep experience. With direct access to an investment manager, you’ll be able to make the deftest use of different asset classes and account types.

Your Wealth Manager will get to know you and your financial situation extremely well in order to implement an investment strategy on your behalf, in such a way that your financial objectives are achieved. You’ll be able to plan your investments in a way that you can make the best returns possible with an appropriate risk profile.

Your Fiduciary Wealth Manager will adapt your investment plan according to your shifts in risk appetite, changing cash flow needs, risks coming from your business that you want to hedge, or investments you’d like to make by leveraging your liquid assets. Even more so, your Wealth Management team continually stays abreast of the fluctuating risks and opportunities presented by the market.

We Can Help

A strong investment plan integrates your investment philosophy for your wealth, your needs, and your goals. At Prosperity Financial Group, we understand that If It’s Money, It’s Personal™. We work closely with you to evaluate the risk-reward profile of the investment landscape and position you to benefit from potential opportunities.

In addition, we can help you manage your tax liabilities, plan asset transfers, and structure philanthropic gifts.

If you need a trusted partner to help you grow, protect, and preserve your wealth at every stage of life, please fill out the form below and we’ll get back to you shortly. We look forward to hearing from you.

DISCLAIMER: Advisory Services offered through Prosperity Financial Group, Inc., an Independent Registered Investment Advisor. Securities offered through Fortune Financial Services, Inc. Member FINRA/SIPC. Prosperity Financial Group, Inc. and Fortune Financial Services, Inc. are separate entities.

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