5 STEP PROCESS
At Ladenburg, we believe that planning for financial success includes applying core investment principles of portfolio diversification*, risk management and disciplined long-term investing. With this as a foundation and working with your financial advisor, we use a 5 step process to determine what customized investment philosophy best suits your unique requirements.
STEP 1: ANALYZE YOUR CURRENT POSITION
Before a single investment is considered, we will perform a detailed analysis of your unique requirements. Working with your advisor, we can gain a comprehensive understanding of your risk tolerance, time horizon, liquidity and income needs, return requirements, investment preferences and tax considerations can we design the optimum portfolio solution.
STEP 2: PLAN A DIVERSIFIED PORTFOLIO BASED ON YOUR NEEDS
Managed diversification is about striking a balance among various investments in your portfolio to reduce your exposure to risk and at the same time try to take advantage of the full range of opportunities in the market. By combining asset classes into a diversified portfolio, you can move closer to the returns that will allow you to reach your goals while maintaining a risk level with which you feel comfortable. Historically, various asset classes did not always move in the same direction at the same time. In one year, stocks may provide the highest return, the next year, bonds or money market funds may be the top performing asset class.
True diversification occurs when a portfolio is composed of assets with dissimilar behavior, so that the upward movement of one asset may offset the downward movement of another. By spreading your investment risk across asset classes you can achieve a more consistent return with less wide fluctuations in value than you might experience from a non-diversified portfolio
STEP 3: FORMALIZE THE INVESTMENT POLICY
Having analyzed your requirements, your advisor will then recommend an investment policy that outlines a disciplined strategy, designed to help meet your needs. The purpose of the investment policy statement is to outline a plan based on the information you provide about your present and future financial circumstances. You and your advisor should review your investment policy annually, at a minimum, and any time your financial circumstances change to ensure it is still aligned with your current financial objectives.
STEP 4: IMPLEMENT STRATEGY
Based on your recommended investment policy, we will determine which model allocation is best suited for achieving your goals. Models ranging from conservative to aggressive are available. Asset allocation is based on a disciplined, long-term financial strategy, investing into various asset classes. We believe, over the long run, it is important to have an established strategic asset allocation strategy. However, our investment strategists also employ tactical decisions in order to capitalize on unique investment opportunities. This flexibility allows you to participate in economic conditions that may be more favorable for one asset class than for others.
Step 5: ONGOING MONITORING AND SUPERVISION OF YOUR PORTFOLIO
Market forces continually impact the underlying value of assets in your portfolio. LTAM's managed asset portfolios are systematically monitored and all portfolios are rebalanced on a periodic basis. Investment models may be reallocated as market conditions change to manage the risk exposure of your portfolio to ensure it reflects your asset allocation policy.
We understand the need for clear, regular communication and therefore, as a client of Ladenburg you will have access to:
- Monthly or quarterly account statements from your custodian
- Quarterly customized performance reports and commentary
- Year-end tax reports (if applicable)
*Diversification cannot guarantee a profit or protect against a loss in a declining market
The return and principal value of an investment will fluctuate so that, when redeemed, they may be worth more or less than their original cost. Economic and market conditions effect the performance of an account. Since no one investment program is suitable for all types of investors, this information is provided for informational purposes only. You should review your investment objectives, risk tolerance and liquidity needs before selecting a suitable investment program. Not FDIC Insured