Building a portfolio for the long term

If you are looking to create a financially secure retirement as well as leave wealth to the next  generation, you will need to look at investing from a long-term perspective. This means not  overreacting to volatility in the market. Your investment decisions should be thoroughly  researched, based on data, with unemotional and rational judgment. Accomplishing this will  require that you ask yourself certain questions. 

What are your investment goals? 

In order to develop a comprehensive investment strategy, you will have to first determine what  your objectives are for investing. Are you looking to be able to fully retire and stop working once  you hit retirement age? Perhaps you plan to work part-time during retirement which means you  may not need quite as much capital to sustain yourself during your golden years.  

You may even be looking to leave your heirs with a sizable inheritance that will take care of  them for the rest of their lives. This will need to be factored into the investment decisions you  make today. 

What is your tolerance for risk? 

Some assets have the potential for higher returns which can be attractive to many investors.  However, with higher returns usually comes more risk of possible large losses that you should  be aware of.  

Those who are younger may be more willing to take on risk since they know they can likely  continue working to earn money for many years to come. Older individuals who are closer to  retirement may have less appetite for risk. 

Paramount Wealth professionals will take our time to truly understand what level of risk is right  for you.  

What is an appropriate asset allocation for you? 

Which asset classes, market positions, and amount of capital for each position will depend on  your investment goals and your risk tolerance level. Our financial professionals help you  determine the asset allocation strategy to give you the balance to fit your financial objectives  and current financial circumstances.  

When was the last time you reviewed your portfolio? 

The economic environment is constantly changing which means that in order to stay on course  with your financial objectives you will need to rebalance your portfolio regularly. This entails  taking a look at how much capital you have allocated to each asset and determining if it still  

stays consistent with your risk tolerance. Additionally, your financial goals and tolerance for risk  can also change with time and your portfolio should be rebalanced to reflect this.  

It is a good idea to obtain the advice of professionals to help you understand the advantages  and disadvantages of investment options. Our team can help you analyze any investment  opportunity that you are looking into. We can also help you develop a comprehensive  investment strategy that fits your financial objectives with a long-term orientation.  

The information contained in this report does not purport to be a complete description of the  securities, markets, or developments referred to in this material nor is it a recommendation. The  information has been obtained from sources considered to be reliable, but we do not guarantee  that the foregoing material is accurate or complete. Any opinions are those of the author and  not necessarily those of Raymond James. Expressions of opinion are as of this date and are  subject to change without notice. There is no guarantee that these statements, opinions or  forecasts provided herein will prove to be correct. Investing involves risk and you may incur a  profit or loss regardless of strategy selected. Past performance does not guarantee future  results. Future investment performance cannot be guaranteed, investment yields will fluctuate  with market conditions.