What percent of your retirement portfolio is being actively managed?
On paper, it sounds good to have 'growth' stocks in your portfolio as compared to value stocks. But what about when the market is down? Your investment advisor should adjust your positions proactively to minimize losses BUT not in a passive investment portfolio.
If you feel like you're losing more than you should, it's likely some or all of your investments are being passively managed in your current portfolio.
Our Color of Money report will give you insights as to how much risks you need to be taking for a secure future.
Color of Money Risk Analysis (COMRA)
Properly Allocating Your Retirement Nest Egg
Throughout our working years, we attempt to accumulate as many eggs as possible into our retirement nest. Unfortunately, many people spend their energy focusing on how to accumulate a large retirement nest egg without giving any thought to where their retirement assets should be invested. While accumulating your desired amount in retirement assets is important, we feel it is just as important to have your money in assets representing the level of risk or safety you want.
One of the easiest ways to determine where you should have your retirement assets allocated is to use a color system for your money. Our firm has put together a simple way for you to group your retirement assets into red, yellow, and green money. Each color of money has unique benefits and features. A properly colored asset allocation can help provide you with the retirement you want.
Red money is risky because it's unmanaged. There is a good growth opportunity, but you need to make sure you are prepared for volatility. Red doesn't mean that assets are bad – it just means you should stop, look in both directions, and proceed cautiously.
Yellow money is professionally managed. It is similar to red money and may contain some of the same types of investments, but benefits from professional management, and that can make a significant difference. Professional money management helps ensure that the investment strategy you intend is used to make investment decisions. Yellow money could include portfolios designed to create income, help control volatility, focus on long-term growth, or anything in between.
Green money provides more safety and guarantees. The growth potential is less than red and yellow money. Still, you can also move comfortably through retirement knowing your assets are safer and available to provide the income stream you are looking for in retirement. Green money comes in two varieties – dark green and light green money. Whichever version of green money you choose, your assets are protected against investment loss.
As you prepare to enter into the distribution phase of your life, cleaning your nest is important. Do you have your nest eggs allocated correctly? Do you know how much of your assets should be in red, yellow, or green money? We will help you sort your retirement nest egg and clearly label your assets, giving you a clearer picture of the color of your retirement.
DURING YOUR ANNUAL REVIEW PROCESS WITH YOUR ADVISOR YOU WILL BE REQUIRED TO UPDATE YOUR COLOR OF MONEY RISK SCORE.
- Understanding the Three Colors of Your Money. Each color represents a different level of risk and potential reward.
Red investments are considered unmanaged risk, but they also come with the potential for high returns. Yellow investments fall in the middle, offering a balanced level of risk and reward. Green investments are low-risk options that prioritize capital preservation over significant growth.
- Shifting from Passive to Active Management Strategies. Why is that important in my investment strategy?
The Color of Money Risk Analysis report encourages investors to move away from risk-based investment strategies that might carry too many risks to an active management strategy. By actively managing your investments, you have the potential to achieve higher yields and maximize your returns. This analysis helps you identify areas where you may need to adjust your investment approach to align with your goals and risk tolerance.
- The Color of Money risks Report gives you Increased Confidence and Security that your financial plan is personalized.
By taking the Color of Money Risk Analysis, you can gain a deeper understanding of your investment preferences and risk tolerance. This knowledge is invaluable when it comes to making informed decisions about your financial future. With the insights provided by this analysis, you can confidently navigate the investment landscape, making choices that align with your personal goals and aspirations.
Ready for financial clarity?
You'll receive these free financial reports with our financial planning process.
Financial Overview Report
This report provides you with an overall view of all your investments & retirement plans.
Color of Money Report
This report gives you a detailed risk analysis score compared to your current investments.
Social Security Maximization Report
This report provides you with a detailed analysis of your social security benefits and how to maximize them.
Allocation Road Map Report
This report shows you how your investments are invested and allocated to your score goals.
Compass Report
This report brings together all your investments and retirement assets into one detailed retirement report.