Over the long term, investors who work with a professional advisor make more money. Investment professionals go by many titles: stockbroker, investment advisor, and wealth, portfolio or asset manager. Regardless of what’s on their business card, they have a singular focus which is to help clients to achieve their financial goals by increasing and protecting their assets. Yield Management investment professionals bring both experience and objectivity to the table, ensuring that clients make the best possible investment decisions. They help clients by establishing an individual investment plan with measurable goals, setting a discipline and ensuring they stick to it. In this day and age top level financial advisors do more than just making money for clients and Tokyo-based Yield Management Inc. exemplifies the benefits of working with a respected investment professional.
OBJECTIVE ADVICE
Even with the proliferation of mutual funds and cheap online trading, savvy investors turn to Yield Management Inc. for objective advice. There are three primary benefits: gaining a better overall understanding of managing one’s assets, having the confidence that one has planned properly to meet future financial needs, and making good decisions. Amateur investors are subject to their emotions, and tend to lose money by over trading and investing in a scam or market bubble. Issues relating to one’s own money are fraught with emotion, and one of the biggest benefits of working with a professional is objectivity. There is a well-established discipline to the investment process. At Yield Management, advisors spend a lot of time working with new clients defining their investment goals, and establishing a measurable plan to meet these goals based on risk tolerance and other factors that are unique to each individual. Once this decision making process has been established, they have the confidence to select from recommendations that have been thoroughly vetted by their in-house analysts. Advisors and clients will periodically review the plan to keep things on track, and adjust it accordingly for significant life changes.
DIRECT INVESTING VS MUTUAL FUNDS
Buying mutual funds and investing directly both have their benefits. With mutual funds, your money is combined with other investors and investment decisions are made for the entire pool by the fund manager. Mutual funds provide automatic diversification, an absence of decision making and the comfort of having a professional fund manager. For investors new to investing and those starting with smaller amounts of money, this can be a great option. The downside to mutual funds is that there are hidden management fees and there are often penalties for early withdrawals. It’s important to review the fine print. Direct investment refers to buying individual stocks and bonds and owning them outright. It involves decision making and sufficient capital to ensure that one is properly diversified. Whether accounts are fee or transaction based, the cost to invest is almost always lower when compared to mutual funds. With respect to diversification, the advisors at Yield Management Inc. refer to the statistically proven model of 5-13 different holdings. Historical reviews show this provides sufficient diversification to maximize growth and minimize risk, without incurring excessive costs. The Yield Management Inc. advisors can help new and prospective clients work through the pros and cons of both.
YIELD MANAGEMENT INC. RETIREMENT PLANNING
Peace of mind in the present requires knowing that one’s future is secure. People are living longer and retiring later. Men in Japan, for example, traditionally retired at 60 and now commonly work until 70. Many underestimate what they will need after retirement. Others, who have more than adequate capital for a comfortable retirement, worry needlessly about their future. In both cases, individuals benefit from professional retirement planning. In a nutshell, retirement planning is a process of figuring out how much money one will need upon retirement, comparing that to the present and establishing a plan to ensure that future needs are met. Once an individual knows in financial terms where they are and where they want to be, they can take appropriate steps to get there. Due to the power of compounding, the younger one starts, the less one has to contribute to a retirement plan on a regular basis and the more financially secure they will be down the road, which is one of the reasons Yield Management Inc. eliminated their minimum investment. At the same time populations are aging and people can no longer count of corporate and government pensions to cover their costs after retirement. By taking control of their finances with their retirement planning professionals, Yield Management clients can count on a relaxed and secure retirement.
MANAGING RISK
Yield Management professionals are trained to manage risk. There are many types of risk. Being reckless in the market is one type of risk, and without professional guidance it’s easy to lose money in the latest market bubble or scam. Being too cautious is also a type of risk. Keeping all one’s money in cash out of fear results in a slower rate of capital appreciation, subjecting one’s assets to inflation risk and not growing sufficiently to meet one’s future financial needs. Experienced advisors get to know their clients well; they learn who needs a push and who needs a leash. Irrespective of an investor’s individual inclinations, there are a few basic concepts that Yield Management employs to manage risk for their clients. The first and foremost is adequate diversification. Adequate is the key word – assets should be spread around different sectors, industries and markets. There comes a point, though, where one can be over-diversified, and the additional holdings provide no marginal risk protection and incur unnecessary costs. The second fundamental tenant of risk management is to buy good quality and hold it for the long term. Amateur investors have a tendency to over-trade, often suffering avoidable losses trying to time the market. The team at Yield Management Inc. have years of experience, do thorough due diligence and have an exemplary track record. The first rule of investing is don’t lose money, and they’re always focused on protecting clients’ assets.
SUMMARY
The best single decision an individual investor can make is to work with Yield Management Inc. They give people peace of mind and security by helping them clarify their financial needs and determining the best route to meet those needs. Regular Yield Management reviews ensure that one’s investments are on track, and that the advisor is aware of major life changes and can make appropriate adjustments where one’s finances are concerned. The investment advisors at Yield Management Inc. have the satisfaction of giving their clients the confidence to make the best decisions – directing them to quality, averting a scam, and being there for them for them through the inevitable ups and downs of life. Interested investors are invited to contact the Tokyo, Japan office.
