In real estate investment, as everyone knows, the key is location, location, location. When it comes to personal investment management though, the key is plan, plan, plan. In our view, investment management can only be done well within the context of the Comprehensive Financial Planning process.

Planning is the key to achieving your financial life goals – from short-term goals such as a longed-for vacation to critical long-term goals like living a life of dignity and comfort in retirement. Along with cash flow management, investment returns are one of the engines that will power you toward your goals.

By following the 5 Keys to Successful Investment Management, you will find a sense of freedom from the anxiety of watching the markets bounce around, and you will dramatically improve your chances of achieving a retirement of dignity and comfort.

The 5 Keys to Successful Investment Management

  • Set clear, attainable goals, which are derived from the financial planning process
  • Employ Strategic Asset Allocation, which synchronizes your future spending needs with your portfolio design
  • Use Disciplined Diversification – no market timing, no trying to beat the market, be patient in down markets
  • Plan for a 30 year, two-person retirement
  • Focus on your long-term investment strategy, rather than reacting to market ups and downs

By setting clear, attainable financial goals as part of your long-term personal investment management strategy, you are not only more likely to reach them, you will also be able to track your progress over time, and make adjustments to your strategy as needed. With a long-term strategy, you will have the proper mindset toward your investments. You will have perspective on the inevitable market ups-and-downs, enabling you to better avoid the common pitfalls of the reactionary investor, who makes changes based on fear and greed – only to regret it.

The Comprehensive Financial Planning process will guide your mix of investments. By balancing your portfolio design with your future cash needs, what we call Strategic Asset Allocation, your investment strategy powers your long-term goals. We manage this dynamic process for you as we re-evaluate and rebalance your investments regularly.

Your long-term investment plan should incorporate a 30-year, two-person (if you are married or have a partner) retirement. Life expectancy has increased dramatically, and women are especially vulnerable to a lack of planning for longevity. For example, a 65-year-old woman has a 53% chance of living to age 85 and a 32% chance of living to age 90.

And, last but not least, do not gamble on the market. It is reacting to fear and greed which defeats most long-term investment plans. Playing the game of “market timing,” or “beat the market,” or taking advantage of a “sure thing,” is the surest way to create inferior real-life investment returns. When you are planning for the future, your personal future, you can’t afford to take such risks.

If you’re looking for more information on personal financial planning and personal investment management, please download your free copy of our Services Guide or, if you live in the San Mateo area, get in touch with us today for your FREE Personal Investment Management Consultation.