A custom financial plan for wealth management sets out a client’s longer-term goals and guidelines on how to achieve them through a financial portfolio of investments. In tailoring a portfolio, Gosho Financial Group considers each client’s time horizon for appreciation, risk tolerance, optimal tax strategies and other investments including 401(k) plans.
Prior to investment selection, Gosho Financial Group analyzes long-term, intermediate term and current views of financial market cycles to come to an optimal portfolio of investments for wealth management. Gosho Financial Group uses both fundamental and technical analysis to develop and then monitor client portfolios. For example, Gosho Financial Group looks at the S&P 500 Index over the last 100 years to identify bull and bear market cycles along with accompanying price/earnings ratios (P/E ratios). An intermediate-term view of the Dow Jones Industrial Average since 2000 shows bull rallies in a bear market cycle.
Current views of investment choices and potential investment returns are considered, adjusted for the potential effects of inflation.
Then, Gosho Financial Group considers what mix of six asset classes can best achieve a client’s wealth management objectives. Those asset classes are: cash, equities, fixed income, currencies, commodities and real estate. Portfolios can include a broader range of investments; e.g., cash, individual bonds or fixed income securities (not bond funds) and equity (primarily individual stocks) depending on client needs for long-term growth, income or both.
Once an investment portfolio is assembled, it is regularly monitored and actively managed to help achieve the long-term financial objectives set out in the financial plan. The best wealth management firms take an active role in monitoring and adjusting the portfolio.
Increasingly, global events can have immediate or long-term effects on clients’ money and their lives. At Gosho Financial Group, we understand that staying aware of global markets, intermingling cultures and environmental challenges will also be important to managing our clients’ investments.
Contact Gosho Financial Group’s San Mateo office today to talk about our world-class service with a personal touch to assist you with a wealth management plan.