Do You Have A Plan?
Prospective clients often ask how our portfolio performance has been. This identifies an all too familiar fact regarding the primary main stream financial focus, short term investment results. Our clients understand that accumulating wealth is a long term process that needs to be planned, implemented, tended, and refined on a regular basis.
Royale manages client portfolios with the goal of attaining the consistent long term returns that are required to meet client goals. This process requires a true commitment from our clients. The time period over which to invest must be identified as well as the ability to invest a set amount on a regular basis. We will determine a lump sum target that needs to be attained to meet client goals and identify the specified annual rate of return required to meet that target. Finally, we meet with the clients on an annual basis to review and amend any of the above steps as necessary.
Most investors are focused on the unquantifiable goals of maximum short term returns and accumulating as much money as possible. Based upon those parameters, to say that it is difficult to measure progress is nothing short of an understatement. Our clients know where they stand and where they are going.
Finally, let me address the two risks to your investment portfolio. One is the risk of losing money and the other is the risk of missing the opportunity to increase wealth through investing. Our client accounts declined in value in 2008 along with the markets, but as we stayed the course over the long term, the damage has proven minimal at best and is totally within our parameters for achieving long term financial success.
Our advice to you for this year is, if you do nothing else, please create an investment plan. There is no need for you to fear the short term instability of the fickle markets when you can benefit by focusing on a long term investment plan. Whether you utilize the services of an advisor, such as us here at Royale, or simply read a book on the subject, good guidance is available. In the end it is up to you to take action, which actually makes that the beginning.
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