Our 5 Step Process
Reaching your long-term financial objectives hinges on having the right plan -- one that fits your unique circumstances and grows with you. The five step approach utilized by Security First Advisors will help to create the right plan for you.
Step 1: Developing Your Investment Profile
Security First Advisors will help you develop an Investment Profile comprised of your individual investment objectives, your current financial profile, understanding of your time horizons, and access your tolerance for risk. As with any journey, you and your advisor will need to take stock of exactly where you are today, where you want to be in the future, and what assets can be brought to bear before charting a course.
Step 2: Establishing Your Asset Allocation
Perhaps the most important step in determining your portfolio’s overall performance is the asset allocation. Research has shown that over 90% of the variation in total returns is due to the portfolio’s asset allocation. Here our, education, experience, and training truly comes into play. With the right asset allocations strategy, you can reduce risk while maintaining a desired level of return or conversely increase return while maintaining a given level of risk. Consequently, our process of considering your investment objectives and investor profile, will allow us to help you choose a mix of asset classes and styles that will fit your personalized investment portfolio.
Step 3: Building Your Investment Portfolio
The next step in this process is to select the specific investments that make up your portfolio. Just as with any ship using the wrong sail under certain conditions can lead to disastrous results, improper investment allocation can also lead one to end up on the rocks. Proper asset allocation of your investment dollars among equities, fixed-income, and cash according to your risk tolerance, investment objectives, and market conditions is vital in determining your long-term investment results
Step 4: Monitoring and Rebalancing Your Portfolio
It is imperative that we periodically review your portfolio with you as part of a monitoring process. As part of that process we will help you review your investment portfolio and keep you apprised of major developments that may affect your investment choices or asset allocation. While maintaining your portfolio we watch for market opportunities throughout economic cycles and changing market conditions in order to provide, if necessary, qualified advice on how and when to rebalance your portfolio
Step 5: Reporting the Results
Tracking the success of your portfolio against your stated objectives is an integral part of any investment program. Not only is it important to know if you are on course to achieve your goals, but equally important is to know in a timely manner that you have veered off course and corrections may be required. To that end and upon your request, we will provide you with a computer generated Quarterly Performance Report that gives you a very visual, easy-to-understand record of your investment portfolio. In addition, periodic review conferences with your Security First Advisor will call your attention to possible situations that may require action. Unless you know how you are doing and monitor it periodically, you may fall into a false sense of security that you are about to arrive at your destination, when in reality you are headed for troubled waters.
The Confidence to Enjoy Investing
We realize that financial planning is not a static procedure, but a very dynamic process requiring periodic review and fine-tuning. Consequently, emphasis is placed on developing a flexible yet very interactive program. While we all need to deal with an endless array of constantly changing circumstances, with their never ending collection of changing variables (i.e., changing risk tolerances, time frames, and individual objectives, and market conditions, etc.) you can rest assured that your plan is both flexible and reactive enough to help keep you on course.
There is no assurance that our investment program will enable you to attain any objectives and the profitability of any investment recommendations cannot be guaranteed. However, we believe that a well thought out plan has a far better chance of helping you reach your desired goals than leaving your investment fate to the unpredictability of the wind! With Security First Advisors, you have the advantage of individualized programs developed by professionals, utilizing state-of-the-art tools delivered in a personalized hands-on manner.
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