Investment Planning

Tahoe Rim Wealth Advisors

At Tahoe Rim Wealth Advisors, we adhere to a data-driven three-step process to ensure success in all that we do for our clients. We create customized, comprehensive financial plans for each individual we work with. There are no two financial situations that are the same; therefore, each person requires a unique financial strategy. We are passionate about client education and host regular seminars. Joanna Moran CFP® AIF® CDFA® specializes in investment planning, life insurance, and divorce financial planning. With her experience and your goals, there is no limit to pursuing your financial success.

Many people find themselves asking questions about how to invest money. Of course, there is no simple answer. However, beginning is simple. First, get an investment advisor representative involved in the process. Every investor’s journey begins with financial goals. It is important to consider what you want your wealth to do for you. Your goals will determine the approach you take on how to invest money. Because no two financial situations are identical, no two investment planning portfolios will look the same. An investment advisor representative will help you sift through what you have, your goals, your timeframe, and so much more to create your investment planning portfolio and show you how to start investing.

Why is Investment Planning Important?

Investment planning is essential for several reasons. Many people have the desire to invest their money and don’t know how to start investing. A strategic plan allows individuals and businesses to succeed in preparing their investment plan because the road to success is mapped out for them during the investment planning process. Investment planning holds the keys to pursue financial success. Without a plan, how can you know what to do next?

Investment Planning Objectives

In the fast-paced digital world we live in today, options for investing your money are ever-increasing, and there is no evidence that this will slow down. There is always a new trend or a new product that stirs up a craze with inexperienced investors. However, each investment option can be separated into three basic categories: safety, income, and capital gains. These options encompass the objectives of an investor. These objectives come with the innate ability to counteract one another. Finding balance between the three is vital. As investment advisor representative will help with this, which is in part why investment planning is so important.

Safety – It is impossible to eliminate risk when investing. Every investment comes with some level of risk. Risk is inherent to investment. However, it is possible to get a very low level of risk and have a modest portfolio. Government-issued securities and stable economic systems tend to be safer investment options. AAA-rated corporate bonds from large and stable companies are another. Very secure investment options can also be found in securities such as Treasury bills, certificates of deposit, commercial paper, and bankers’ acceptance slips. Of course, having such low risk involved in your investment planning comes at a cost. Returns tend to be just as modest as the investments themselves. Low risk generally equals low return.
Income – Focusing on income can lead to purchasing some of these same fixed-income assets. However, instead of prioritizing safety, income becomes the goal. People at or near retirement tend to focus highly on income since they will no longer receive regular paychecks from an employer. Government and corporate bonds can be involved, but investors focused on income may go beyond the safest AAA-rated choices.
Capital Gains – Capital growth is achieved when assets are sold. Stocks are capital assets. Outside of payments for dividends, stock owners must cash them in to achieve gains. There are numerous kinds of capital assets ranging from precious stones to real estate. They all come with a level of risk to the investor. Selling at a price lower than the paid price is considered a loss in capital. However, from blue-chip stocks to growth stocks, risk levels vary greatly.

Investment Advisor Representative

Balancing primary investment planning objectives like safety, income, and capital gains is key to successful investment planning. An investment advisor representative will help ensure that your portfolio is diverse and balanced. Don’t try to figure out how to invest on your own. Call today.

All investments involve risks including possible loss of principal.