Private Wealth Management Group
(800) 585-9888
Investment Management
The Facts of Successful Investing
 
Many institutions will scale their operations by generalizing consumers into model portfolios and endorsing buy-and-hold strategies. This may allow them to become large and profitable with minimal effort, but we don't believe it delivers much value.  
 
Fact: The "Time Value of Money" tells us that each investor with specific financial goals needs to accumulate a specific Future Value over a specific Time Horizon; and that means designing an investment portfolio to achieve a specific Target Rate of Return.
 
For many frustrated investors, their expectations have not been met because their expectations have not properly been measured.
 
Emotion-Driven Investing:
Investors don't like to see their  accounts go down. But without allowing the investment  strategy sufficient time to achieve its Future Value, many investors inevitably let their emotions take over, and they end up buying or selling when they should be doing the exact opposite.
 
Irrelevant Comparisons:
The progress of your investment portfolio should be measured over time by how well it's meeting your Target Rate of Return; not the Dow Jones index, not the bragging neighbor, and not the pundits on tv.
 
Seeking Maximum Return:
Pursuing higher returns comes with the potential for higher risk. Why drive 100 miles per hour to your destination if you have plenty of time to get there? It is similarly important to align your investment risk with the Time Horizon of your investment goals.
  

Short-Term: Funds needed within a brief time horizon will generally tolerate little risk. Focus on safety and liquidity, avoid anything that may impose a penalty for early withdrawal, give more attention to stability than inflation, and watch out for total costs, fees and expenses

Mid-Term: Determine the resources that can be can be allocated to each mid-term goal and calculate the rate of growth needed to achieve it. Balance investment risks, employ some concern for taxes and inflation, and consider reducing risk exposures over time as your goals approach.

Long-Term: Determine the resources that you can allocate to each long-term goal, and calculate the rate of growth needed to achieve it. Align investment risks in proportion to the expected return, consider the impact of inflation, evaluate domestic and international assets, and systematically capture losses and offset gains for tax efficiency. Monitor progress, benchmark your performance against the necessary rate of growth, and reduce risk exposures over time.

By pairing today's innovative technologies with our navigational expertise, FirsTrust can help achieve your investment goals with a portfolio that properly aligns risk with reward.

 It's just like driving a car: if you choose the wrong road, drive the wrong speed, or take the wrong vehicle, you'll be significantly less likely to arrive where you want to be - when you want to be there.
 

                                   Plan Your                                   Quantify Your                               Engineer Your

                               Optimal Route                              Optimal Speed                            Optimal Vehicle 

                                                                          

 Here's what we know after many, many years of investing for our clients:
 
  • Clients often come to us with relatively suitable investments but a disproportionate exposure to risk. In these cases, we seek to realign the portfolio without selling everything, paying the taxes and starting all over again. 
  • We know the widest selection of the world's best performing investments is rarely ever found at the local bank or brokerage. As a truly independent firm, we are free to evaluate investments across the globe for the most appropriate components of each client's portfolio.
  • We know that taxes can be a tremendous drag on a portfolio's total return, and employing strategies to reduce them can produce better net returns without incurring additional risk.
  • We know many financial products are burdened with ambiguous fees and unnecessary expenses, buried in the fine print of confusing disclaimers. Reducing or eliminating these costs is another effective way to save our clients money.
  • We also know that emotions often drive or inhibit investment decisions. We believe that not making an investment is just as important as making one, and adhering to the disciplines of a strategy, prudent risk management, and having a written investment policy are essential to fulfilling a client’s long-term objectives.

FirsTrust’s investment management services are a process of discovery, design, advice, coordination, implementation, collaboration and reporting. This process is ongoing and evolves as our clients’ circumstances change.