Wealth management aims to grow your investment portfolio for the long-term. All investments have risk, but sound investment strategies limit that risk to a level that is appropriate for your lifestyle, age, and personal taste. To build a comprehensive portfolio suited to your needs, investments must satisfy your individual goals in the short-term and generational goals for the future.
Goal-oriented wealth management includes the following strategies:
Asset allocation
A mix of different stocks, bonds, and cash investments that balances risk by investing in multiple types of assets.
Diversification:
Investing in multiple securities within an asset class, such as buying stocks from multiple companies.
Rebalancing:
Buying and selling assets to optimize your portfolio and maintain your asset allocation strategy.
Tax-Loss Harvesting:
Offsetting investment gains with losses to lower tax liability.