There are numerous kinds of investment vehicles such as stocks, options, bonds, CDs and real estate to choose from in planning an investment portfolio. However, these investments yield significantly different results in terms of performance that are almost predictably underpinned by the level of risk that they represent. For example, stocks yield a higher potential rate of return than bonds do, but they are not secured in the same manner that bonds are, and therefore carry more risk. There are many issues of bonds, including the U.S. government, state and local governments, corporations and foreign governments.
Once you have decided which investment vehicle or combination of investments best fits your investment objectives and risk tolerance, there are yet more choices that are available in crafting an investment strategy that will optimize your potential returns on investment within your portfolio. For example, growth portfolios are typically weighted more heavily in stocks than fixed income vehicles. Income portfolios are more heavily weighted in fixed income vehicles than stocks. And there are even strategies that are available to sophisticated investors involving options that can be used to strategically enhance the potential performance of their portfolio. Willow Cove’s investment professionals are skilled in working with our clients to establish and execute the optimal strategy to meet their specific objectives.
