Here is an example of how we have helped our clients with their financial needs.
Michael first became my client shortly before the financial crisis of 2008. He is a hard-working person, employed by a major financial institution that had been hugely successful. The first time I looked at his portfolio, he had the majority of his assets invested in his employer stock. Although I could not predict what was about to happen to the value of that stock, I do know it is never prudent to have most of one’s investments in any one asset. I built a portfolio for him that kept a piece of his company stock, but then broadly diversified the rest between many different kinds of stocks and bonds.
Shortly after we made the changes, the financial crisis crashed down on the U.S. economy. His employer stock lost about 88% of its value. To put that in perspective, most of the world stock markets, including the U.S. markets, lost about 40% in value. Michael’s portfolio had significant, above market risk before we made those changes. Because of that change, his portfolio was much more resilient than it would have been, and also regained its value much more quickly than it would have if we had not made those changes. His company’s stock price still has not recovered fully from the plunge in value, while his portfolio has not only recovered, but also grown beyond its original value.
To be clear, it is virtually impossible to predict when we will have a market correction. I certainly cannot make those kinds of predictions. One’s best defense is to have a portfolio invested in the right mix of stocks and bonds and then within those asset classes, own many different types of stocks and bonds. That is classic diversification, and it gives investors a higher probability of success in meeting their financial goals.
Read more client stories to learn about how we can help.
At Summit Financial Partners, we believe strongly in personalized service that our clients can trust. Our clients’ financial success is important to who we are.
Whether you are needing help with pre-planning, organizing, and simplifying assets, managing an estate after the loss of a loved one, or diversifying your financial assets, we are here to help you.
Contact us today to find out how we can help you.