Cornerstone Wealth Management provides investment advisory services to individuals, businesses, trusts, and retirement plans.
Client portfolios are constructed through the ongoing purchase and sale of individual stocks, mutual funds, exchange-traded funds, certificates of deposit, municipal and corporate debt securities, and U.S. government securities. We consider the individual needs of each client in making purchase and sale decisions within clients’ accounts and will make any necessary adjustments for each individual's needs.
Investment Management is the process of selecting a mix of asset classes that closely matches each individual investor's profile.
Because all investments and asset classes involve some sort of risk, an asset allocation strategy seeks to mitigate the risks of any one asset class through diversification. It is based on the premise that the different securities and asset classes have varying cycles of performance, and that by investing in multiple asset classes, the overall investment returns will be more stable and less susceptible to adverse movements in any one class.
Each asset allocation is an individualized strategy, so clients are not just put into a model based on a brief questionnaire.
Each individual’s strategy is built on the careful consideration of the key elements of their financial profile:
Investment Objectives: What the investor hopes to achieve using this investment portfolio – improve current lifestyle; achieve capital growth; fund a specific goal
Risk Tolerance: This reflects the investor’s comfort level with market fluctuations that can result in losses. Inflation risk and interest risk need to be considered as well. (Click on the button below to learn more about investment risk.)
Investment Preferences: An investor may prefer to invest in one asset class over another based on a certain bias or interest towards the characteristics of that class.
Time Horizon: The length of time an investor is willing to commit to achieving his objectives.
Taxation: Investing in a mix of asset classes will have varying tax consequences.
An Evolving Strategy
All Cornerstone Wealth Management clients have periodic reviews of their current financial situation and their investment strategy.
Financial markets will change, as will your financial situation. Through market gains and losses, a portfolio can become unbalanced and it may be important to make adjustments to your allocation. As people move through life’s stages their needs, preferences, priorities and risk tolerance change and so too must their asset allocation strategy.