Investment Management

Designing An Asset Allocation Strategy Aligned With Your Risk Tolerances

The world of investments has become more complex every year even as technology appears to have made things simpler. In an age of robo-advisors, you might be wondering why you should engage an actual human being for investment advice. At Strait & Sound, we believe investment management is a crucial service for achieving complete financial independence. Most people need an experienced investment expert to guide them on this journey. Here is why we say this.

Many people will work, save and seek to follow a financial plan to achieve their goals. But very few people in this country will be able to realize total financial independence unless they take some form of risk on investments. A strong annual household income paired with a disciplined savings program will take you a long way. But then inflation steps in and erodes the buying power of your cash. Most of the clients we serve need investment returns that outpace the negative impacts of inflation while also covering all of their living expenses so their cash-reserves are not depleted.

Most of our clients were not born with a silver spoon in their mouths, where they inherited so much wealth that they never have to think about money again. Instead, our clients have to be smart with money, make good decisions, carefully weigh the pros and cons of each choice and practice certain disciplines. This is the only way, for the vast majority of our clients, that they will ever achieve complete financial independence.

This is where risk enters the picture. At Strait & Sound, we believe smart risks are your ally against the negative impacts of inflation, having cash-on-hand for expenses and never outliving your money. Historically, almost no other form of money management has produced the same levels of return as a sound, long-term investment strategy.

A dollar invested in 1920 and carefully watched over but never withdrawn from the markets, even with all of their ups and downs, would be worth many times that amount 100 years later, in 2020. Past results are not a guarantee of future results and we want to say for the record that we have no crystal ball to predict the future. But based on everything we can see today, we do not believe there is a better strategy for building wealth than a sound, long-term investment strategy paired with a disciplined financial plan.

Why Our Clients Invest

Our clients invest for many reasons, but the overarching goal is to have money on-hand in the future, when they’re probably not working and producing a monthly income. Some clients want to build up a sizable nest egg that they can transfer to heirs through their estate. Other clients have charitable intent, where they want to make a real difference in the world through organizations they support.

Most of our clients choose to remain in the markets even after retirement. They are comfortable taking that level of risk. Other clients want to withdraw from higher-risk options for the peace of mind of knowing their money is secure. These two psychological forces—risk and security—drive much of the behavior and many of the conversations with have with clients.