What's more difficult than earning Money ? Investing it and creating Wealth. And what's more difficult than creating Wealth ? Preserving it !
It is said that Wealth usually does not pass on beyond three generations. There are very few families in the world that have managed to do this successfully. And invariably all of them, have some sort of Wealth Management Strategy in place.
Investments under the Capital Preservation Strategy are Skewed towards Debt.
The debt investments are suggested in such a manner that returns from it ill increase to the nearly to level of initial invested capital.At the same time the equity portion of the Portfoliois suggested with the aim to provide a filip to the overall Portfolio value.
The conventional method of creating Balanced Portfolios is to allocate money to Equity and Debt in let’s say ratio of 50:50. Investors having done this grapple with the volatility on their portfolio as it baffles them that despite of having hedged themselves, their portfolios are still volatile.
Comprehensive Financial Planning (CFP), is like constructing a building, by preparing it’s plan first. Not that you can not construct it without a plan, it’s just that it would be far more complicated and prone to numerous errors.
Copyright © All Rights Reserved