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These are the investment guidelines our firm uses. We invite you to adapt it and share it with your clients.

Every investment portfolio should have a significant allocation to bonds. Behind our belief in high-quality bonds as an appropriate investment for at least a portion of an individual investor’s portfolio is a deep structure, which we call Richelson investment guidelines.

These guidelines have been of value to our clients over the years. They are designed to provide a framework to help you evaluate potential investments and determine which specific investments are appropriate to support your goals and level of risk.

Our seven guidelines are as follows:

  1. Clarify your financial goals and life objectives.
  2. If you can’t afford the risk, don’t play.
  3. Don’t lose money.
  4. Evaluate the return on an investment on a risk-adjusted basis.
  5. Understand the investment.
  6. Understand the investment’s liquidity.
  7. Understand all tax aspects of the investment.

1. Clarify your financial goals and life objectives

List your financial needs, life objectives and values as specifically as possible. In short, what are your financial assets currently and what asset value do you hope to reach before retirement? What are your backup plans in the event that the unexpected happens and does not conform to your crystal ball? Fortunately, all we have to do is know the present and be satisfied each day that we have achieved our personal best. Tomorrow will take care of itself if we focus on today.

How do you decide how to invest for your future? Unfortunately, there is no way to know the future: Will the stock market be at an all-time high, or just suffered a severe, prolonged market drop? Will the real estate market be booming, or will the smaller, younger generations depress housing prices just when you want to sell?