Effective Portfolio Management – Understanding Risk

One of the basic premises of investing is that investors attempt to maximize the returns from their investments.  In doing so, it is assumed that investors are risk averse, that is, given a choice between two assets of equal rate of return, an investor will select the asset with the lower level of risk.  Although this relationship does not imply that all investors are risk averse, it does mean that there is a positive relationship between expected return and expected risk.  So how do we define risk? Continue reading Effective Portfolio Management – Understanding Risk

The Cost of Investing

The cost of investing is a crucial component of overall portfolio performance. Informed investors must understand the impact of investment fees and expenses, since the cumulative impact of these fees and expenses can be substantial. This is especially true with an ever growing universe of investment options, and the various levels of account management services, all having their costs. So, while most investors regularly monitor investment holdings, investment costs must likewise be reviewed. Continue reading The Cost of Investing

IAM Investing Principles

 

Current market volatility requires investors to reaffirm goals, reassess investments and rebalance portfolios with the goal of sound, long-term portfolio management. By identifying risk characteristics, return goals and time horizon, investor’s are able to balance their portfolio to properly match asset allocations (cash, bonds, stocks, other) to reach these goals.

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Guidelines For Helping Investors Set Their Investment Objectives

As investors build their investment portfolio, it is important to maintain a proper allocation to targeted goals for investment types (cash, fixed income, stocks, etc.), depending on the investor’s tolerance for risk. Investment Account Manager includes some guidelines that may help investors with setting their investment objectives.

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The Impact of Expense Ratios on Investment Performance

The basic idea behind investing is to grow your assets, of course. However, there are certain factors involved in the entire investment process that can take a chunk out of your expected investment returns. Investment fees are one notorious factor, so we decided that we’d look through some of the basics on expense ratios and their potential impact on investment performance…

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4 Major Stock Market Myths

Like many aspects of society, Wall Street has bred its own mythology. Some of these myths about the stock market are quite harmless, but some can have deep financial consequences for those who subscribe to them.

One of the biggest myths of the stock market is that what goes down, must go back up (and its corollary, what goes up, must come down)….

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