Asset Management
Investing without a plan or strategy can be a recipe for disaster.
At Cabot Money Mangement, we believe that determining the proper asset allocation plan for our
clients starts by understanding their needs. Do they need to save for
retirement? How about college savings for their kids? Are they interested in
allocating a portion of their funds to benefit their children in the future?
The mix of investments in a client’s portfolio will contain a variety of
investment vehicles tailored to each client’s goals, timeframe and tolerance
for risk.
US Equities: Stocks of small, mid and large US companies
spread across many different sectors and industries. Some stock positions may
be held with the goal of long term capital appreciation while others may
generate regular dividends to help with current cash flow needs.
Foreign Equities: This piece of the allocation
consists of stocks of companies in both developed markets and emerging markets
(China, India, Brazil). Many foreign nations are growing
at a rate that far exceeds that of the US and as a result, there are many
exciting sectors and stocks to consider as part of a portfolio.
Bonds: Fixed Income securities designed to generate a steady cash flow
over time. Bonds are typically bought and held until they mature at which time
the investor is given back the face value of that bond.
Alternative Investments: This group includes asset classes
outside the realm of a typical “stock and bond” allocation. Alternative assets
may include precious metals, commodities, REITs or other non-traditional
investment vehicles.
Every investor’s goal should be to have a sound, efficient asset
allocation designed to be flexible enough to change as their needs change. The
uncertainty of the global markets makes it critical to assess your allocation regularly
to insure it remains appropriate. Our professionals at Cabot are trained to
walk clients through the myriad of investment options available and can help
them determine what combination best fits their needs.
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