Lifecycle of a Financial Portfolio
The collection of investments owned by an individual or any entity is known as a financial portfolio. Serving a crucial role in wealth and finance management, a financial portfolio’s life cycle is important to understand as its most crucial component is patience. Wealth accumulation does not happen overnight and a strong portfolio takes time. Below are the frequent five stages of a financial portfolio under wealth management advice: 1. Strategy: The initial stage of creating a financial portfolio is the development of its strategy. An advisor, such as those at Foundation Wealth and Tax Advisors, will strategize and formulate plans and strategies based on identifying the client’s financial goals, risk tolerance, and investment horizon. It is recommended that the investor contacts a financial advisor near by to accurately pinpoint their financial needs and develop an efficient wealth management strategy accordingly. 2. Collection/Accumulation: During this stage, an investo