Realize Financial Objectives
Serving as clients’ investment manager, we can help clients achieve a variety of financial objectives, depending on the client's goals, risk tolerance, and time horizon. Some common financial objectives that we can assist with include:
1. First and foremost, preserving purchasing power. Under modern fiat monetary system, inflation is a normal state. Inflation quietly and gradually devalues money, whose accumulated effect is astonishing. If people keep their money in their pillow cases, even with a moderate average annual inflation rate of 2% (the Federal Reserve’s target), 50 years later, those money would lose 64% of their purchasing power. To avoid such situation, clients’ assets must earn an investment return no less than inflation rate.
2. Exploiting second source of income. Usually, people have two resources to generate incomes. One is their human capital, and the other is their financial capital. With their career skill sets and hard work, most people are doing well with their human capital by doing their jobs, while they do not take full advantage of their financial capital by investing, which requires also endeavor and another set of skills. As investment professional, we complement clients in exploiting the potential of their financial capital so as to make it a meaningful source of income.
3. Setting up financial reserves for certainties and uncertainties. Life is a long-distance journey full of certainties such as retirement and children’s education needs, and uncertainties such as possible lay-off and health issues. With enough financial reserves set up through investing, clients can sleep still well when facing these certainties and uncertainties.
4. Fulfilling some of clients’ dreams. With wealth accumulated from investments, clients can realize many of their dreams such as purchasing a home, traveling, starting a business, creating legacies for future generations, and supporting charitable causes, which makes clients to be happy people. We view this as the best part of our job.
