Look up the word “intention,” and you’ll find a number of synonyms: Aim. Purpose. Objective. Goal. Target. End. Design. Plan. Resolution. Ambition. Desire. Idea. Dream. Aspiration. Hope.
The sense of determination inherent in each of these words strikes a powerful chord with us, and resonates with the work we do as a wealth management firm.
We believe it’s vital to have a disciplined investment philosophy and crucial to follow basic best practices; investing with intention is a journey. At The Humphreys Group, we begin by reviewing and discussing the wide world of investment objectives, risk and strategies with each client — expanding their knowledge, ensuring they are informed and ascertaining the best strategy or strategies that will work for them. Some areas we cover:
Investing 101: We remind clients they are buying assets for their potential to increase in value, provide income or do both. This means they need to expect fluctuations in returns, volatility, and cycles of depreciation and appreciation; long-term goals such as retirement, buying a home or paying for college are investments that often weather such cycles.
Stocks vs. Bonds: Stocks mean clients own shares of a company, and those shares will increase or decrease in value based on how well the company performs. Bonds are considered less risky than stocks; they are a form of a loan to a company and investors’ payoff comes in the form of company interest payments on those bonds.
Asset Allocation: Multiple factors contribute to how a client approaches asset allocation. We recommend that, when making decisions about where and how much to invest, clients should take into account their unique views on their risk tolerance and risk capacity levels, financial goals, financial timetables, required income and tax considerations. We also remind them to consider the variety of external factors that have the potential to affect investments, such as: market volatility, short- and long-term risk, inflation and purchasing power.
As we build collaborative relationships with our clients, we continue to help them assess their strengths, challenges, skills, values and goals. We do this by encouraging and engaging them in ongoing ways—including publications, events, Conversation Circles and the extensive day-to-day financial advisory services we provide. And we counsel that investing with intention has the following behaviors:
- Begin investing early
- Know your risk level
- Create a plan that can grow and evolve with your needs, values and goals
- Avoid high fees and expenses
- Invest regularly and automatically
- Remain in the market and act with discipline, rather than participate as a “market timer”
- Diversify your investments to mitigate risk
- Maintain a balanced stock portfolio
- Don’t invest in financial products or instruments you don’t understand
“Live less out of habit and more out of intent.” We aren’t certain who wrote these words, but they ring true when it comes to examining the array of investment-strategy options available in the twenty-first century. They are also words we strive to live by in every interaction with our clients.
We pride ourselves on providing comprehensive financial advisory expertise to women. We consider their assets and investments, and also take into account the values, skills, experiences and goals our clients have gathered throughout their lives. Our holistic approach is infused with expertise and intention; we seek to ensure that the fiscal plans we develop with our clients enable each one of them to achieve sustained professional and personal success on their terms.
Contact us today to continue to converse about investing with intention.