Portfolio Construction is more of a conceptual framework and process rather than the application of a simple model. Hence the steps leading up to this point.
- Investment Objectives - The Investment Objective drives how we invest your assets.
- Given your particular financial situation and risk tolerance we establish an investment objective that helps you achieve your goals. Assets are invested primarily in Publicly traded Individual Stocks (i.e. Apple, Amazon, etc.) and Individual Bonds (i.e. Treasuries, Corporate Bonds, etc.). Other investments may be used within the portfolio including but not limited to Options, Futures, etc. Prior to implementing these strategies, a discussion is scheduled with you and our Portfolio Managers.
- Risk Tolerance – Willingness vs Ability
- Return Expectations – Trying to find the best risk vs reward balance (efficient frontier)
A well-constructed Portfolio should take into account risk, correlation among securities and return requirements of the client. Voit & Company has six primary Investment Objectives:
- Income & Growth
- Growth & Income
- All Equity
- Two additional types of investment objectives are available for clients: Fixed Income only and Aggressive Growth.
- We are willing to work with you and your accountant to manage the portfolio as efficiently as possible from a tax standpoint
- Withdrawals from specific accounts, Roth conversions, realizing gains/losses at opportune times
Specific Restriction or Focuses
- Avoid specific sectors, industries, or securities