Flodder Financial Group’s Approach begins by identifying and understanding your needs and goals, both at present and in the future.
Drawing from our years of experience and wealth of resources within Equitable Advisors and its affiliates, we work with you to create a robust strategy toward the attainment of your goals. This strategy is supported by a careful selection of products and investments.
All investing is for a purpose. You may want to save for college for your children, put an extra room on your house, buy a lake house, or have a great retirement. The time frames associated with each of these objectives helps determine the level of risk you could be willing to take and the payment stream ultimately necessary to meet your needs. For example, do you need a single lump sum or a steady stream of income that has the potential to gradually grow with inflation? Once we have defined the use for the investment we then begin to define the strategy.
The first step in our investment philosophy is to define the level of risk you are willing to take toward meeting your needs. In addition to timeframe there are many factors affecting your risk tolerance. One of the most important elements of risk tolerance is understanding what level best lets you sleep soundly at night.
The second step in our Investment Philosophy is Asset Allocation—strategically positioning your investments across different asset classes to help manage risk and enhance returns. The goal is to select a mix of asset classes that could help you meet your long-term investment goals. Stocks (equities), when held over a long period of time, have proved to be the investment class with the greatest growth potential (Stocks, Bonds, Bills, and Inflation (SBBI) Yearbook, Roger G. Ibbotson and Rex Sinquefield, 2009). However, as recent market performance has amply demonstrated, stocks can be extremely volatile in the short term. Maintaining a long term perspective and ensuring good diversification can help mitigate the volatility of the overall portfolio.*
The third and final step is to not just ride the roller coaster of the market up and down over time. Instead, rebalancing the portfolio back to the selected asset allocation on a routine basis can result in capturing the positive market results and reinvesting those dollars back into the lesser performing asset classes.
Discipline is required to ensure that rebalancing takes place while also insuring that the investments are reviewed for quality and diversification. As needs for the assets change it is important that the investments also change*.
*Rebalancing and diversification do not guarantee a profit or protection against loss.