Once we have ascertained your risk tolerance, time horizon, investment goals, personal preferences, and anticipated changes in financial structure, we can begin to fashion a portfolio using the appropriate balance of asset classes.

In the process of designing your portfolio, we determine the proper ratio of equities to fixed income and incorporate IRA, 401(k) and related accounts into overall investment strategy. Then we evaluate between which holdings are already in the appropriate core asset classes, and which are in need of re-allocation. Core asset classes include U.S. and foreign stocks, large-cap and small-cap stocks, value and growth stocks, real estate investments, fixed income securities and cash or cash equivalents.

By combining core asset classes in a manner that produces a low-risk, high expected return strategy, matched to client preferences, circumstances, and abilities, Cardiff Park builds portfolios that: posses the greatest probabilities of meeting client requirements and improves the odds that clients will stay the course in difficult market environments.

The primary determinant of portfolio risk and return is the ratio of equities to fixed income (that is, of stocks to bonds). For clients seeking income, fixed income holdings are a necessity. For clients interested in long-term growth, fixed income diminishes the volatility and risk of equities.

The financial media and the money management industry sometimes oversell the benefits of long-term stock market investing based on the long-term historical success of equity dominated portfolios. History may overstate the future attractiveness of stocks. Relying on equities to exhibit their general characteristics in any specific time frame is risky. The best protection against a future that differs from the past lies in a broadly diversified and well balanced collection of assets.