The decision to invest in equities versus fixed income assets is a complex one. It is very much dependent on goals for each investor as well as the risk tolerance level for fluctuation. Equities and fixed income assets can be combined together based on each client's unique needs to develop an appropriate strategy.

It is not a binary decision-making process in terms of determining whether equities or fixed income makes sense; usually a combination of the two is most appropriate. Items to consider in constructing an appropriate blended investment portfolio strategy include tolerance for fluctuation, desire for income, time horizon for invested assets, and a variety of other factors.

What is important is that the mix should not only be appropriate based on expectations for return but the comfort level for each investor for volatility. It cannot be emphasized enough that the volatility considerations should be part of the original investment decision and should not be just an afterthought. It must be a key component of creating an investment philosophy with the best investment planner in Orinda and one that we believe will drive the construction of portfolios.

Remember, the mix of equities to fixed income will vary not only on current conditions but also will adjust as time passes by. It may make sense for an investor in their 30’s to be primarily equity-focused while an investor in their 70’s may decide to lean more towards fixed income. Each investor is different. Volatility and time horizon are important factors in constructing portfolios and this is why a careful analysis must occur on a regular basis to determine if the appropriate asset mix is in place while taking into consideration the current conditions and where each client is in their life.

Destination Wealth Management is delighted to provide investors a strategy that is dependent on comfort level and client goals that are comprised of a mix of equities, fixed income and other related assets. Not one situation is the same in terms of client circumstances, so further discussion is required to carefully assess the appropriate mix of assets to be utilized in a portfolio strategy.

If you would like more information about Destination Wealth Management, please do not hesitate to contact us.

Destination Wealth Management is a client-centered wealth management firm that offers investment management, financial planning, and a holistic approach towards helping our clients in Orinda succeed throughout every important life transition.