Retirees require a different type of investment portfolio than those who are growing the nest egg. Typically, this is one that is geared towards protecting what you have saved over your life while being able to generate a high level of income and minimize taxes. After all, one of the biggest challenges in retirement is making sure that one does not have the concern of running out of money.

Our team at Wise Wealth Asset Management uses many different tools to help build a portfolio for our clients. We will start with a conversation that revolves around how you need your money to work for you.

  • Do you intend to take income from your portfolio now? Maybe a future date? Or possibly you simply wish to grow your nest egg and pass it on to your heirs?
  • Building a portfolio for income is quite different than building one for pure growth. If you are no longer putting money into your account, but rather taking it out, it takes a specific portfolio and skillset to build that portfolio.
  • Taxes should always be a consideration when building your portfolio
  • How much risk are you comfortable with? We are all human and some of us are more willing to accept than others. Our advisors will walk you through the process of determining how to find your “Risk Tolerance.” In short this boils down to how much losses one would be willing to accept in a down market. There are many different ways to quantify your risk, one of our software tools that we use is Riskalyze.

The service that it provides allows advisors to ask their clients a list of questions related to financial risk and then assigns a number based on those answers. Patented Risk Number technology harnesses a computational platform that won the Nobel Prize for Economics in 2002.2 Advisors can use the numbers generated by this program to craft portfolios that contain exactly the right amount of risk. They can also use it to show clients that they may be taking more risk in their current portfolios than they realize.

Riskalyze offers a risk questionnaire. Once it is submitted, the advisor will input their client's investment choices directly into the program. Advisors find the program exceptionally useful when compiling complex data, as a single number is easier to analyze than theoretical risk profiling.

In addition to quantifying risk into a single number, the Riskalyze program also allows advisors to perform stress tests on a portfolio using a wide range of scenarios, such as a market crash or jump in interest rates.The stress testing tool allows clients to see where they are vulnerable in their portfolios and how they can mitigate these risks. The program's portfolio mapping module gives advisors a way to project with 95% accuracy whether a given client's portfolio will achieve the returns that the client wants.

Technical tools for portfolio construction:

We use several different high level software programs to help build portfolios. There can be better times and worse times to buy an asset (Stock, ETF, Mutual Fund etc.) and these tools help us in our quest to determine where an asset may be in the “cycle.”

Their screening and comparison tools help us analyze security data, develop new investment ideas, and build better portfolios through data-driven decision making.

Symbolik® by DeMARK® is a cloud-based financial analytics application to help you navigate the markets.

They deliver institutional-grade charting, technical analysis, market timing and advanced functionality to personal and professional traders, investors and money managers.