People naturally become more risk-averse as they age and often seek to preserve the money they have earned as one of their primary investment goals. There is usually a season in someone’s life in which traditional stock market risk can be tolerated; typically risk tolerance begins to change as a person ages.
The most important question in stock market investing is this: How do I minimize downside stock market risk while participating in its upside? Every answer seems to be imperfect. An investor or an investment advisor can attempt to minimize that risk – but risk can never be eliminated.
As an investment advisor, our goal is to truly minimize that risk. If we are able to do that job well, we believe the upside will take care of itself. We attempt to be transparent in publishing our investment performance. We use Theta Research, a credible third party data reporting service. Theta provides extensive ways of measuring performance and risk that individuals and professionals find useful.
REPORTING AND TRACKING
The investment industry seldom provides information to the individual investor that is easily understood so they have an up-to-date view of their account performance. We believe that part of an investment advisor’s role is communicating investment performance and the risk being taken to achieve that performance.
We use Blueleaf automated data reporting software as a tool to communicate to our clients about their performance, account balances, holdings and allocations for all of their accounts and with most custodians. Account performance is compared to standard industry benchmarks and data is updated daily. Clients are provided with login credentials and are able to access this information at any time.
We also provide customized monthly reports to clients that explain the status of their accounts. In contrast, many investment advisors tend to provide template-type information on a quarterly basis