It's our job as investment advisors to design a portfolio that is properly diversified, that takes into consideration your risk tolerance and return objectives.
We look at historical data to construct the framework of your portfolio, which tells us which assets classes to own and how much to own in each asset class. This gives us a good compass heading, but the compass doesn't fly the plane, the pilot flies the plane.
The historical data guides our directional heading but doesn't take into consideration the conditions that exist today and certainly doesn't take into consideration your specific needs or concerns, such as your time horizon, risk tolerance, retirement goals, and spending needs.
All this goes into to designing a strategy that specifically suits you. But our work is not done after we design your portfolio because it's based on the information we have at the time.
We know markets will change and so may the circumstances in your life. We don't believe in “set it and forget it.” We don't always tell you to stay the course no matter what's happening in the world.
We manage every asset you are invested in, and if we see indications that your investment may no longer be secure in a certain segment of the market, and we believe that the trend will continue, we may need to adjust.
When times are good, we believe that our clients should get their fair share of whatever returns the financial markets offer. But when times are bad, we don't think our clients should feel their only option is to weather the storm.
Pilot strategies are not a guarantee against losing money, but a way to be more nimble than staying fully invested in all market conditions as is typically the case with most mutual funds and other investment philosophies that have the restrictions of double handcuffs.
If you are interested in learning more about Pilot Portfolios relative to your financial plan, please contact us.
It's interesting – planning your future isn't that dissimilar from planning a great vacation. The first step is figuring out where you want to go!
The second is setting the proper course heading to get yourself there. Of course, you wouldn't fly on a plane without a pilot – who would be there to make sure you continue on the right path to reach your destination?
The third step is all about knowing when to adjust. If your situation shifts or the economy changes, your plan should be nimble! After all, your life isn't static, so why should your plan be?
IMPORTANT DISCLOSURES Any opinions are those of the Investment Manager(s) and their team and not necessarily those of Raymond James. Opinions are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security outside of a managed account. This should not be considered forward looking, and does not guarantee the future performance of any investment. All investments are subject to risk, including loss. There is no assurance that any investment strategy will be successful. Asset allocation and diversification does not ensure a profit or protect against a loss. It is important to review the investment objectives, risk tolerance, tax objectives and liquidity needs before choosing an investment style or manager. This is not intended to be a client-specific suitability analysis or recommendation. Do not use this as the sole basis for investment decisions. Do not select an investment strategy based on performance alone. The individual(s) mentioned as the Investment Manager(s) are Financial Advisors with Raymond James participating in a Raymond James fee-based advisory program. This is an investment advisory program in which the client's Financial Advisor invests the client's assets on a discretionary basis in a range of securities. Raymond James investment advisory programs may require a minimum asset level and, depending on your specific investment objectives and financial position, may not be suitable for you. In a fee-based account clients pay a quarterly fee, based on the level of assets in the account, for the services of a financial advisor as part of an advisory relationship. In deciding to pay a fee rather than commissions, clients should understand that the fee may be higher than a commission alternative during periods of lower trading. Advisory fees are in addition to the internal expenses charged by mutual funds and other investment company securities. To the extent that clients intend to hold these securities, the internal expenses should be included when evaluating the costs of a fee-based account. Clients should periodically re-evaluate whether the use of an asset-based fee continues to be appropriate in servicing their needs. A list of additional considerations, as well as the fee schedule, is available in the firm's Form ADV Part 2 as well as the client agreement.