Investment and Asset Management

Most people who decide to purchase stocks, bonds, mutual funds, or other investment vehicles do so understanding that there are risks associated with investing, but believing that the potential growth they may realize over time outweighs such risks. However, because there are no guarantees, investing assets can be a nerve-wracking experience – especially during periods of market turbulence.

Understanding the Elements of Investment Planning

Investment planning encompasses several concepts, including diversification, asset allocation, portfolio rebalancing, and the decisions that go into choosing and evaluating the performance of your investments.

  • Diversification. You have likely heard the adage “don’t put all of your eggs in one basket.” The idea of diversifying your investment portfolio, which is a central tenet to investment planning, is based on the idea of spreading risk by putting your investment dollars into multiple baskets. There is no one-size-fits-all strategy for how to diversify your portfolio. For one investor, a well-diversified portfolio may include just a handful of investments. For another, a portfolio with dozens of securities may be best. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
  • Asset Allocation. While diversification refers to investing in more than one security, asset allocation is a deliberate approach to diversifying, investing a certain percentage of your overall portfolio into a number of different categories or asset classes, such as equity (stocks), fixed income (bonds), cash or cash equivalents, real estate, and more. Asset allocation does not ensure a profit or protect against loss.
  • Rebalancing. Implementing an asset allocation plan tailored for you is not something you can do once and then forget about. Over time, the performance of the assets in your portfolio can cause your asset allocation to drift, so that one asset class may have a higher percentage than planned, while another makes up a lower overall percentage. Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.
  • Evaluating Performance. Finally, investment planning also involves monitoring investments and evaluating their performance against market indices or other benchmarks. We use various tools and systems designed to look at yield, rate of return, transaction fees, and more, to help identify potential opportunities. Past performance does not guarantee future results.

What Does Working With Legacy Wealth Management Look Like?

You are at the center of our financial services and investment planning. We help you bring your investment goals into focus, and we prepare a detailed plan to help you work toward your investment goals, and represents our best ideas for what may be appropriate for you. Every day of every week, our investment team meets with people like you who have questions or concerns about their investment portfolios or their retirement situation. We have a conversation. We listen carefully, to you.

With your approval, we assist you in transferring your investment accounts to Legacy Wealth Management and our custodian, LPL Financial.

You retain ownership and control, and then our team begins to implement your personal investment plan. This involves handling the ongoing purchase, sales, or maintenance of individual investments.

Going forward, we meet with you on a regular basis to provide investment portfolio reviews and to answer any questions. We do not make changes without your involvement and approval.