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October 25, 2002 - Image 9

Resource type:
The Detroit Jewish News, 2002-10-25

Disclaimer: Computer generated plain text may have errors. Read more about this.

"Asset Allocation is investment talk for
`risk you are comfortable with.'" By Paul Hack

All investment strategies have risk.


Interestingly, studies have shown the
way in which a portfolio's investments

It's easy to understand the level of risk

are allocated is more important than

at the extremes. Like the sew-
the-money-in-the-mattress approach,
where the money earns nothing and
loses its value if there's any inflation at
all. Or, attempts to double-your-

the individual investments in
deter mining the overall performance

money-quickly with highly
speculative option or commodities



investment consulting

of Raymond James & Associates

in the long run.

Of course, there are lots of variables
besides life cycle stages that affect the

appropriate asset allocation plan.
Some are external, environmental
factors. But most have to do with the

client's goals, anticipated needs, the
assets available for investment today
and anticipated in the future; and,

every client has a different level of


Most of us
intuitively under-
stand these are
risks that can
easily ... and not

unreasonably ...
keep us up at night
with anxiety.

tolerance for risk.

Our experience is that every client
has a specific level of risk tolerance
that minimizes insecurity and anxiety.
Asset allocation plans that give the
client that comfort level provide a
very high rate of return right at the


But it's more difficult to develop
strategies that can help each investor
achieve his or her financial goals with
levels of risk that are appropriate, that
meet their comfort level. These

This is why we insist that every

client relationship begin with a
thorough analysis of the variables that

sure it is tailored toward the client's


Finally, we execute the allocation

strategies through the use of
independent money managers,
experts who specialize in selecting
investments within each individual


There are over 14,000 money
managers around who can handle
individual investor accounts, so
finding the right one for each strategy
for each client is challenging. But it's

doable. And it's another way we give
our clients the confidence they ought
to have in their investments.

At Paul Hack Investment Consulting
of Raymond James & Associates, this
is what we do. For clients with at least
$1,000,000 in assets available for
investment, we develop an asset
allocation plan tailored to the client's
situation, needs and goals, and we

execute it through the use of
independent money managers.

The most rewarding thing about

affect the client's situation including
the client's goals and risk tolerance.
Then we develop strategies that lead
to an asset allocation plan designed to
maximize the opportunity to achieve

working with clients the way we do
is not just that our clients feel so
successful, or that we keep getting
new clients ... both of which are

This kind of plan looks a lot
different for investors at different

those goals.

very nice!

stages in the life cycle. The 24-year-
old single investor ought to invest his
or her first IRA contribution a lot
differently than a 75-year-old widow
ought to invest her savings. But there
are a lot of life stages between those
two extremes, and the optimum asset
allocation plan for any investor
evolves as the investor's own life cycle

That plan can involve many
investment alternatives, including
fixed income and equity investments;
growth and value investing; small-cap
and large-cap equities; domestic and
international investments; and REITs

It's that we've really found a way to
help our clients feel comfortable with

strategies together make up what
investment advisors call an "asset

allocation plan."


31550 Northwestern Highway, Suite 250
Farmington Hills, MI 48334

and other specialty vehicles.

We then review that plan with the
client and together hone it until we're

their investments.

If this -"investment talk" sounds
comfortable to you, give us a call at
248-932-2902. We'll be glad to show
you how it works. Or, ask us to send
you a copy of our brochure that

explains what we do in more detail.




Member New York Stock Exchange/SIPC

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