wealth management

Many factors go into a good wealth management strategy, so let’s review some of them:

Investment diversification. To maximize your wealth accumulation, it’s important to manage risk. One good way to do that is to consider having a portfolio that is diversified between traditional and non-traditional stocks. This includes some alternative investments, whose low correlation to stocks and bonds can help to manage your portfolio when the market is down.

Utilizing the strengths of the wealth management team. We’ve talked before about the fiduciary standard of a CERTIFIED FINANCIAL PLANNER™ and how they have a responsibility to look out for the best interest of their clients. This also means that a good wealth manager often works with a team of other professionals to maximize their clients’ financial plan. For example, a financial advisor often teams up with a CPA. This gives the client sound investment opportunities and strategies developed by their advisor while the CPA structures these investments as related to taxation to the benefit of the client.

Understanding the unique needs of the client’s portfolio. A good wealth advisor should always evaluate a few key dynamics of a client’s portfolio when looking to add more investments in the mix. These factors include:

  1. Understanding the volatility tolerance and how it will affect the ratio risk/return
  2. How the portfolio’s current assets mix with new investment considerations (i.e., offsetting traditional assets with non-correlated alternatives)
  3. Knowing the fees and trading costs associated with the investment
  4. Knowing how risks can be managed if diversification isn’t an option


If you have questions or concerns about your wealth accumulation strategy, please give the Mooney Lyons team at 1-847-382-2600 or visit us at mooneylyons.com.


Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

Alternative investments may not be suitable for all investors and should be considered as an investment for the risk capital portion of the investor’s portfolio. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

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