Achieving Established Financial Goals
Once the proposed portfolio has been designed it is now necessary to calculate the probable cash flow of the portfolio and the probability of achieving the investor’s financial goals. Using AdvisoryWorld’s and other analytical tools the advisor can view this information using cash flow analysis and/or Monte Carlo simulation. This process will give the proposed portfolio credibility with regard to the estimated rate of return, volatility characteristics and likelihood of achieving the investor’s financial goals.
Establish a regular period of review with the client.
Various personal experiences and external factors can easily move the client’s risk profile in either direction requiring some modification of the portfolio and financial objectives. Changes in the dynamics of the financial markets may also require reevaluation of portfolio allocations and asset class participation.