One way to have more control over your portfolio’s results is by following a disciplined approach to investing. Diversified portfolios that are regularly re-balanced to maintain their desired asset allocation have a high likelihood of achieving the return expected by their designated investment strategy over the long haul. Investors who adhere to their long-term strategies during volatile times and market corrections almost always walk away with their anticipated results over the long term. It is the impatient investor who shies away from his/her strategy during market declines or dials up the risk during market highs who often jeopardizes his/her ability to achieve the expected long-term results. Unfortunately, many investors become impatient at the wrong time as can be seen by mutual fund flows over various time periods. At RCL Advisors, we review our clients’ investment strategies, long-term expected returns, and risk information with them to confirm that their portfolios continue to meet their objectives. We believe this is critical in ensuring that our clients do not try to time markets or fail to re-balance their portfolios as we strive to enable them to achieve their long-term expected results.
Another way to have more control over the results of a portfolio is through the utilization of derivative strategies. Derivative strategies have helped several of our clients create more tailored results for their portfolios or for sections of their portfolios. These strategies can be implemented through an active or static approach and can seek a variety of specified results. However, it is important to note that these strategies can be complicated and often come at a cost to the client. While an option in some cases, these strategies need to be considered in great detail to evaluate the costs and benefits of their implementation in achieving the specific client’s objectives.