-
Investment Objectives:During our initial discussion we will spend time discussing your short and long-term financial goals and objectives. Understanding the role that your investments play in your current and future cash flow, and where you are in the 'accumulation-income generation-preservation-distribution' cycle is essential to matching your investment goals to your investment portfolio.
-
Risk Profile.Using a model risk analysis profile questionnaire we will have a discussion regarding risk-reward, time horizon for investments and return expectations.
Asset Allocation.The results of the risk analysis model will provide information that I will use to develop a suitable investment portfolio. A portfolio comprised of investment asset categories that will provide you with an investment portfolio designed to help you achieve your investment goals and objectives. -
Portfolio Design.Whether your portfolio is being designed for long term capital appreciation or the generation of income, selecting the investments to build your portfolio is an important step in developing a suitable investment strategy. There are a number of alternatives that will be discussed and explored as a part of this process, and I will help you to determine which is suitable for your needs. Mutual Funds, Managed Accounts, Wrap Accounts, Individual Securities, Bank Products, Annuities, Insurance Products may all have a place in your portfolio. It is at this step in the process that we focus on which is suitable for your specific needs.
-
Portfolio Review and Reporting.Performance of the investment portfolio relative to your stated objectives and the investment marketplace and the broad economy helps you to keep your investment portfolio and decisions in perspective. We establish a timeframe to meet and discuss whether you are on track and making strides to achieve your investment objectives.
-
This investment planning and management process is used to help you keep your future financial goals and investment objectives in focus and establish a clear set of milestones that you can use to track your progress as you pursue your financial goals and objectives.
FAQs
What is the investment planning process? ›
Investment planning is an important part of financial planning. It involves understanding your current financial preparedness, identifying your future financial goals, and developing a plan to achieve them. Investment planning refers to aligning your investment to your financial goals.
What is the investment management process? ›The investment process is a systematic way to choose where to put your money to achieve your financial goals. It is a roadmap to help you select investments that match your needs, manage your portfolio over time, and stay on track toward your desired outcomes.
What is the very first step in the holistic 7 step financial planning process that we discussed in this course? ›Step 1. Establish Clear Goals. In order to kickstart the financial planning process, the first crucial step is to establish crystal-clear goals.
Which is the first step in the investment planning process? ›Evaluation of investment goals is the first crucial step of the investment process. The purpose of your investment can be wealth creation, income generation or safety. Also, your goals may vary according to age and income. Usually, young people invest with the aim of accumulating wealth and have a risky appetite.
What is the first major step in the investment process? ›- Step 1- Establishing Financial Objectives. ...
- Step 2 - Evaluating Your Risk Tolerance. ...
- Step 3 - Making a Budget & Setting Up an Emergency Fund. ...
- Step 4 - Diversify Your Investment Portfolio. ...
- Step 5 - Doing Research and Analysis. ...
- Step 6 - Making Wise Investment Decisions.
- Step One: Put-and-Take Account. This is the first savings you should establish when you begin making money. ...
- Step Two: Beginning to Invest. ...
- Step Three: Systematic Investing. ...
- Step Four: Strategic Investing. ...
- Step Five: Speculative Investing.
Investment planning starts with taking inventory of the money that's going into and out of your bank account on a regular basis as well as any additional assets you own. Figuring out how much money you have left over each month can help you determine how much you can add to your investment plan through ongoing savings.
What does the investment process begin with? ›Asset allocation: The investment process begins with determining the appropriate allocation of capital among different asset classes, such as stocks, bonds, real estate, and cash equivalents.
What are the phases of IT investment management process? ›CPIC accomplishes these requirements through three phases: Select Phase, Control Phase, and Evaluate Phase. In the IT Investment Selection Phase, the costs and benefits of all available projects are assessed and the optimal portfolio of projects is selected.
What are 5 stages cycles of financial planning process? ›Life cycle financial planning can be separated into five stages: teenage years (13-17 years old), young adulthood (18-25 years old), starting a family (26-45 years old), planning to retire (45-64 years old), and successful retirement (65 years old and above.)
What are the steps in the financial management process? ›
- 1) Identify your Financial Situation. ...
- 2) Determine Financial Goals. ...
- 3) Identify Alternatives for Investment. ...
- 4) Evaluate Alternatives. ...
- 5) Put Together a Financial Plan and Implement. ...
- 6) Review, Re-evaluate and Monitor The Plan.
There are six steps in the financial planning process: understanding your financial circ*mstances, identifying goals, analyzing your current course of action, developing a financial plan, and monitoring progress and updating. This is a great question to ask if you're considering working with a financial planner.
What are the steps of the investment management process? ›- Step 1 - Establishing Investment Goals and Objectives. ...
- Step 2 - Determining Risk Tolerance and Appropriate Asset Allocation. ...
- Step 3 - Creating the Investment Portfolio. ...
- Step 4 - Monitoring and Reporting.
Investment planning is the process of identifying your financial goals and making a strategy to achieve them. Investment planning starts with assessing your financial goals and making a list of your goals and ends with investment and regular portfolio monitoring.
What is the first step in the management planning process? ›The first step of the management planning process is to identify specific company goals. This portion of the planning process should include a detailed overview of each goal, including the reason for its selection and the anticipated outcomes of goal-related projects.
What is step 6 of the steps for effective investment planning? ›Monitoring and Review: The final step is ongoing and involves regularly reviewing the implemented strategies to ensure they are effective in meeting the financial goals.
What are the steps involved in creating an investment plan? ›- Review your finances.
- Set your financial goals.
- Understand investment risks.
- Research your investment options.
- Build your portfolio.
- Monitor your investments.
- Up next in How to invest.
- Stage 1: Idea Discovery.
- Stage 2: Opportunity Assessment.
- Stage 3: Pursue / Do Not Pursue Decision Point.
- Stage 4: Go-to-Market Strategy (Due Diligence)
- Stage 5: Invest / Do Not Invest Decision.
- Stage 6: Execution.