Most conservative balanced investors keep about 30% to 50% of their assets in stocks. More aggressive balanced investors keep 50% or more of their assets in common stock. Please bear in mind that some investors choose to be 100% invested in stocks or 100% in bonds. These individuals are not balanced investors.
What does understanding your debt/equity ratio mean to you? It is a start in helping you understand your level of investment risk. Then, you can begin to compare your investment results. Many investors compare their investments with indexes such as the S&P 500, or the D.J.I.A., plus the various bond indexes that are found in the investment section every day in the Wall Street Journal.
If you are thinking of doing business with us we will want to give you a copy of our ADV Part 2a and 2b. These are our regulatory fillings with the State of Michigan and are intended to help you understand how we do business.
In conclusion, we feel that successful investing is a result of following an investment process. What kind of investment process are youcurrently following?
UNDERSTANDING DEBT-EQUITY RATIOS
There are only two types of investments in this world: You are either an owner or a loaner. If you are an owner, you might own real estate, automobiles, or common stocks. If you are a loaner, you might loan money to your bank, savings and loan, or purchase bonds.
The percentage of assets you have in each of these investment areas determines your personal debt/equity ratio. If you own a combination of stocks, bonds and money market funds you are a balanced investor.
Investment Advisors, Inc
I. Portfolio Management Utilizing No-Load Mutual Funds
If you are interested in investing in no-load mutual funds, then depending upon your particular investment objectives and risk tolerance, we can recommend a menu of mutual funds for your investment portfolio. We have access to approximately 4,000 no-load funds and another 4,300 load-waived mutual funds to choose from through Shareholders Service Group, Inc. and Pershing LLC, an affiliate of the Bank of New York.
Our services include asset allocation, fund selection, ongoing monitoring of investments and recommendations of portfolio changes. We also prepare a quarterly investment progress report. The cost of the program will include our investment advisory fees; (available upon request) and the annual expense ratio associated with each mutual fund. Our online mutual fund transaction costs are currently $25.00
II. Portfolio Management Utilizing Municipal Bonds
We will manage portfolios of tax free bonds for you. This approach can include individual bonds and/or no-load tax-free bond funds.
III. Portfolio Management Utilizing Individual Securities (also known as Separate Managed Accounts (SMA's)
For those who want or need individual equity securities as opposed to mutual funds, we will assist you in the selection of a suitable money management firm(s) that specializes in individual securities. We can participate in your asset allocation, effect your transactions and provide confirmations, statements, and portfolio performance measurement. Your costs will vary depending on the size of your account and on the investment management firm(s) selected.