Investment Management
Legacy Wealth Management, LLC is affiliated with Legacy Advisory Services, LLC. Investment Advisory Services offered through Legacy Advisory Services, LLC, a Registered Investment Advisor.
With the ever changing volatile financial markets it is extremely important to understand the risk exposure of your investments. If a down market causes account values to drop drastically you have to ask yourself a couple of questions.
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When was the last time you had a risk analysis performed on your portfolio?
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How much risk am I taking with my investments?
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Does the amount of risk I am taking match my risk profile?
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Am I taking on too much or too little risk to achieve my investment objectives?
Legacy's Approach
Through Legacy Advisory Services, LLC, a Registered Investment Advisor, we employ an investment management process that is disciplined, unemotional and responsive to changing markets. Some of the concepts that we use to develop our investment plans are risk adjusted returns, diversification and asset allocation. We use these concepts to customize an investment plan to fit each client's risk profile and unique goals.
Risk Adjusted Returns
Our philosophy in managing investments is based on the principles of Risk Adjusted Returns. Risk Adjusted Returns refines an investment's return by measuring how much risk is involved in producing that return. While attempting to achieve returns with an investment portfolio a strong focus has to be put on what level of risk exposure is attached to your given return.
We utilize five different risk measurements: Alpha, Beta, Sharpe Ratio, Standard Deviation, and R Squared while managing the levels of risk taken on an investment portfolio. By using these measurements collectively, an investment plan can be structured to achieve the gains that are expected while minimizing losses of the portfolio in a down market.
Maximum returns over the long term can only be achieved through managing your exposure to risk and eliminating any unnecessary risk exposure. By doing this you can make certain your portfolio is invested properly for both an up and down market environment.
Diversification & Asset Allocation
Diversification means spreading one's money among different investments; asset allocation diversifies a portfolio among different investment classes. Both concepts work to lessen the risks of investing, but each should be incorporated into one's overall investment plan.
We focus on diversification while building ones financial plan; asset allocation is addressed in the investment management of the plan. Together diversification and asset allocation work to minimize the amount of risk exposure while maximizing a portfolio's overall return.
To assure proper asset allocation and diversification of "collective investments" such as mutual funds, exchange traded funds and 401k plans, your portfolio must be managed at multiple levels. One level of management is performed with the investment's fund manager; our clients appreciate an additional level of management through our firm. The additional management level assures that your assets will be diversified while at the same time allocated properly between different asset classes.
Continuous Monitoring
The markets change daily. Your financial situation also changes continually through job advancement, addition of children and grandchildren, and entering different phases of your life. It is because of these changes that your portfolio must be monitored not only for its performance but also its risk. By continually monitoring your portfolio you are able to make the adjustments necessary to achieve your goals and objectives.
By integrating your portfolio with the principals of Risk Adjusted Returns and utilizing the concepts of diversification and asset allocation, you are able to minimize your exposure to unnecessary risk while enhancing returns.
Investment Advisory Services offered through Legacy Advisory Services, LLC, a Registered Investment Advisor.
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