Our Investment Strategy

Since each of our client accounts is individually managed, we have no single “portfolio”. Clients have differing goals, time horizons, and risk tolerances, therefore, the portfolios we manage will have differing balances of stocks, bonds, mutual funds, money market funds, and cash.

Pacesetter Financial Group’s planning strategy focuses on two key issues:

The first is how to create a portfolio that provides the highest potential returns without exposing a client to a level of risk that they are uncomfortable with.

The second is how to make sure that each client has enough money to meet their goals.

The first is about the mix between stocks and bonds and how to make long-term profitable investment decisions. The second is about setting clear, practical planning goals.

Owning pieces of healthy, growing companies (stocks and mutual funds) is the only proven way over time to have one’s money grow. Real long-term growth, growth that is greater than the assured losses brought by taxes and inflation, cannot be obtained from bank deposits, money markets, or bonds.

As one gets older, priorities sometimes change. Producing income and protecting the assets that you have accumulated can become more important. In this case, the proportion of your portfolio held in stocks may need to be reduced, while the proportion held in bonds may need to be increased.

How much should you have in stocks? It is entirely related to how much uncertainty and fluctuation you are willing to bear and how much money you need to accumulate to meet your goal. Keep in mind that most retirees live longer than they generally believe they will. Today, the average life expectancy of a 65-year-old is 18.9 years–nearly a decade longer than the previous generation. So the point is that you may need to accumulate more than you think.