Create a foundation for a disciplined long-term strategy for a variety of market conditions

Pat-1As we know too well, the past few years have presented a challenge for investors. The financial crisis and recession of late 2008/early 2009 have given way to a prolonged upward trend in the domestic equity markets and, along the way, significant volatility. This environment has led some investors toward behavioral temptations, for example, abandoning a diversified portfolio in exchange for greater risk with higher levels of equity exposure. Others, alarmed by the ever-rising stock market, are taking their chips off the table altogether.

A key element in avoiding these behavioral temptations in building a sustainable investment strategy is to “invest with purpose.” The first step? Know what you want to achieve with the wealth.

Know the Goals

Setting clear objectives is central to a goals-based investing approach. This dynamic and ongoing process delivers immediate and tangible benefits. The process:

  • Delivers greater potential to achieve goals versus just trying to beat an index or benchmark based on understanding your client’s specific personal, family, dynastic and philanthropic objectives.
  • Provides a completely objective framework to help investors define what they hope to accomplish with
    their wealth.
  • Promotes ongoing dialogue among investors and advisors to optimize their portfolios around circumstances that can change and evolve.

A customized portfolio asset allocation appropriately tailored to meet an investor’s prioritized goals can be a critical determinant of success.

Read the full text of Invest With Purpose by Patricia M. Soldano