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What is the Core of Investment Customization?

When looking to get the best returns, the answer could lie in customized investment solutions. Unlike packaged investment products, this option allows you to tailor a strategy to meet your specific needs. Some of the advantages of custom portfolio management include the ability to align investments with specific rules or tax requirements while also offering flexibility to adjust to an investor’s changing needs.

Custom portfolio management allows investors an attractive option to work toward their individual goals. For example, some people like one type of stock over another, whereas some people prefer to deal only in international markets while some prefer domestic options.

Additional primary considerations are simply the goals or reasons for investing. Every investor should be able to answer the following questions; What is important about money to me? What is this money for? Is it important if the portfolio value fluctuates? By how much? Have I looked at the Enriched Investing website to learn about many other latent risk factors?

Customized portfolio management solutions are good for deciding which types of investments you would like to have and are equally good at excluding investments you would rather have nothing to do with. This might be something like firearms or tobacco stocks for instance.

Besides a preference for the type of stocks in the portfolio, there are other considerations that customization can accommodate. Customized investment solutions might offer the solution by balancing an investment portfolio. In the case of senior executives with stock options in the company they work for, custom options could balance some of the risks by adjusting the other types of investments in the portfolio.

There are other instances where custom portfolio management could be beneficial. If the investor wanted to make a real estate purchase, funds could be withdrawn from the sale of individual positions within the portfolio while preserving the original characteristics and quality of the portfolio. Other holdings can be adjusted to keep saving and retirement plans intact.

Tax management is another thing to consider. With custom portfolio management, it is possible to arrange a portfolio to minimize tax liabilities. Tax management is something that needs careful attention, as the rules change over time. For instance, as governments change, new administrations may increase tax levels for certain income brackets. Although not a concern for all Canadians, most larger portfolio holders can benefit substantially from a considered approach to tax management.

2021-05-25T14:05:59+00:00

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