General Overview

Many people find themselves confused by financial terminology, overwhelmed by the numerous investment alternatives available, and concerned about losing their hard earned money. The truth is that there are many sound investment strategies that can help individuals and families generate monthly income, develop a more efficient estate succession strategy or increase their net worth over time.

One of the most important aspects of a well-designed investment strategy is what is commonly referred to as asset allocation; the combination and proportion of the various classes of investments that will make up your investment portfolio. Developing the right asset allocation for you and your family requires a thorough understanding of your investment objectives, risk tolerance and time horizon.

Here are a few common asset allocation strategies for you to evaluate with your Ocean Financial Services investment professional:

Capital Growth

Most investors need capital growth to keep up with inflation, the general increase in prices of goods and services. A capital growth strategy primarily seeks to achieve capital appreciation over a medium to long term time period. Capital growth is best achieved over time by utilizing an asset allocation strategy that invests a larger percentage of the total invested in equity investments or stocks.

It may be advisable to consider diversification across various industries, sectors, and geographic regions when implementing a capital growth strategy. Your Ocean Financial Services investment professional might suggest certain stocks which could benefit from current and projected economic conditions.

Current Income

A current income strategy utilizes investment types that produce cash flow on a monthly basis. If your objective is current income, you are most likely to fixed income or bonds in your investment portfolio.  Other investment types such as dividend paying stocks can also help provide current income.

Many people who pursue a strategy of current income are retired and use the income for living expenses. Other people take advantage of a lump sum of capital to create an income stream that never touches the principal, yet provides cash for certain current needs (college or retirement, for example).

Capital Growth and Income (Balanced)

A combination of capital growth and current income is by far the most common and flexible strategy that can be tailored to the client’s specific life stage, family dynamics, income needs and risk tolerance.

A common variation of the balanced strategy involves implementing a more aggressive approach early in life, and a more conservative investing style as clients approach their later years.

Estate Planning and Asset Disposition

Estate planning is the process of anticipating and arranging for the disposal of an estate during a person’s life. Estate planning typically attempts to eliminate uncertainties over the administration of a probate and maximize the value of the estate by reducing taxes and other expenses.