Investment Planning in Five Steps

Michael J. Nathanson (), Jeffrey T. Craig (), Jennifer A. Geoghegan (), Nadine Gordon Lee (), Michael A. Haber (), Max B. Haspel (), Seth P. Hieken (), Matthew C. Ilteris (), D. Scott McDonald (), Joseph A. Salvati () and Stephen R. Stelljes ()
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Michael J. Nathanson: The Colony Group
Jeffrey T. Craig: The Colony Group
Jennifer A. Geoghegan: The Colony Group
Nadine Gordon Lee: The Colony Group
Michael A. Haber: The Colony Group
Max B. Haspel: The Colony Group
Seth P. Hieken: The Colony Group
Matthew C. Ilteris: The Colony Group
D. Scott McDonald: The Colony Group
Joseph A. Salvati: The Colony Group
Stephen R. Stelljes: The Colony Group

Chapter 7 in Personal Financial Planning for Executives and Entrepreneurs, 2021, pp 91-106 from Springer

Abstract: Abstract David and Abby never really bothered with an investment plan, and they paid a steep price for their indifference. A well-structured investment portfolio requires a planning process of developing and setting realistic goals, identifying return objectives, diversifying risk, and monitoring investment performance. There are five key steps that should be part of the investment-planning process: draft an investment policy statement; assess the applicable risk factors; determine the appropriate asset allocation; select the right investment vehicles; and monitor and adjust the portfolio as necessary, including through a regular rebalancing discipline. Common investor mistakes to avoid include not having a plan, overconcentration in company or other securities, attempts at market timing, and performance chasing.

Date: 2021
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DOI: 10.1007/978-3-030-65400-9_7

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