The investment world is enormous. There are literally thousands of products, concepts and strategies, most designed with a common purpose in mind: helping investors accomplish their asset accumulation goals and objectives. Unfortunately, there are millions of investors who aren’t sure what their asset accumulation goals and objectives are – or for that matter, what they even ought to be.

So - millions of dollars that might otherwise be invested with an opportunity for growth that can be provided by higher risk investment vehicles – are instead gathering dust in accounts that may  be safer and more conservative than the needs of long-term  goals and risk tolerance. If you’re among the many who’ve been putting off investing because you simply don’t know where to begin, it may be time to consider a professional asset management program based on an evaluation of your personal goals, risk tolerance, and investment time horizon.

Offered by firms licensed as Registered Investment Advisers, professional asset management programs can help you identify your investment goals; determine where you are today in relation to those goals; and develop a customized plan for achieving them. These programs can also help you monitor your plan to ensure that you stay “on track” throughout your investment time horizon.

The first step in most professional asset management programs is the development of your personal investor profile. Based on your answers to a series of questions, a personalized investment program utilizing a concept called asset allocation is designed specifically for you.

Asset allocation is a strategy whereby you spread your investments across several different asset “classes” designed to help lessen the impact of dramatic, or even normal, market fluctuations in any one class. An asset allocation strategy can help enhance your potential for return while reducing your overall risk.  However, asset allocation does not assure a profit, or guarantee against a loss.

Step two in the process is the development of a personalized report outlining your investment goals and the specific asset allocation strategy you will follow to achieve those goals. Included in the report is information about each of the investments recommended by the plan including their individual performance history, historical returns, and other essential information. The purpose of the report is twofold: it will help increase your comfort level with the investments you will be using, and it will serve as the blueprint you will follow towards your financial goals.

Once your investment portfolio has been selected and established, you will receive professional asset management in accordance with your asset allocation plan. Your investments will be monitored in accordance with your personal profile (risk tolerance, time horizon, financial objectives etc.) and should changes become necessary, your investment mix will be “rebalanced” to make certain it remains appropriate for you. Thus, you can rest assured that your portfolio will be adjusted to reflect who you are, and how you prefer to invest. You won’t have to worry – or wonder – whether you’ve chosen the right investment mix for your situation.

The next step in the process is not so much a step as it is simple maintenance. Periodically, you’ll receive a report showing how your investments are performing, as well as commentary and information on the various market factors that have contributed to that performance. You may also receive reports on where you are in relation to your goals; describing in detail your asset allocation mix and a breakdown of the investments you own within each asset class. These reports will typically compare your return against an appropriate benchmark, allowing you to decide whether to stay the course with your current mix or make changes. Of course, your Investment Advisor Representative will assist you in that decision making process.

The final step in the process – and in any disciplined investment process – is regular performance and goal reviews. Are your investments performing as they should be for accomplishing your goals? Are changes warranted? Have your goals changed, or have you become less/more comfortable with risk? What’s changed in your life – and finances – since your last review?

Based on the answers to these and other questions, you’ll either continue to move forward with your asset allocation plan, or you’ll elect to make changes. And then the process will begin again.

Yes – there are many thousands of investments out there. And yes, it can be challenging (at best) to navigate the almost overwhelming sea of products and information available. But you don’t have to be an expert to get started; and you don’t have to sit on the sidelines, wishing you could “do something” about preparing for the future. By using a professional asset management program based on a personalized asset allocation strategy, you can begin pursuing your investment goals, and building towards your desired financial future.

Stephen Jenkins, AAMS® is a Registered Representative and Investment Adviser Representative of Equity Services, Inc.  Securities and investment advisory services are offered solely by Equity Services, Inc. (ESI).  Member FINRA/SIPC 28 Corporate Drive, Suite 100, Clifton Park, NY 12866, 668-2223. ESI’s professional asset management program is called Illuminations. For more information about professional asset management, Illuminations, or ESI, contact Stephen Jenkins, AAMS® at 583-4040.