Model Portfolios for the Investor Lifecycle
A comprehensive approach to investing should not only include diversification among asset classes, but various strategies as well. Accordingly, we use the following approach when appropriate for our clients. And we customize our client strategies with three categories of strategies that can be tailored to their specific objectives.
The diagram on the right highlights three major stages of the investor lifecycle. The thick white line in the diagram depicts a hypothetical illustration for a typical investor lifecycle. To find the appropriate portfolio strategy, investors must first determine where they are located within the investor lifecycle and then evaluate their specific risk tolerance and objective. Individual results may vary.
As our investors move from growth to pre-retirement to retirement we adjust their portfolios with them, providing additional portfolio components to complement their new stage.
1The Aggressive Growth portfolio focuses on maximum capital appreciation.
2The Growth portfolio focuses on growth of principal with little emphasis on current income.
3The Growth + Income portfolio primarily focuses on growth of principal with an additional focus on current income.
4The Income + Growth portfolio focuses on income, with growth of principal an important consideration.
5The Conservative portfolio focuses on income, with growth of principal a secondary concern.
There is no assurance that the techniques and strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. No strategy assures success or protects against loss.
Investing in stocks includes numerous specific risks including: the fluctuation of dividends, loss of principal and potential liquidity of the investment in a falling market.
Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.
Alternative investments may not be suitable for all investors and involve special risks such as leveraging the investment, potential adverse market forces, regulatory changes and potentially illiquidity. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Global Retirement Partners, LLC (GRP) a registered investment advisor. GRP, LPL Financial, and Washington Financial Group are separate non-affiliated entities.
For more information, please contact us.