Financial Risk Management Strategies

As you build wealth, your circumstances likely become more complex: more assets and maybe more liabilities, more accounts and investments, more responsibilities, more opportunities, more exposures, etc. Who’s watching over your financial picture to make sure all the pieces are in place, that you’re not taking on too much risk, and that you’re on track to achieve your goals? At Durbin Bennett, we have developed a model that we refer to as the hierarchies of wealth. We use this model to help ensure the basic needs of you and your family are taken care of first. Once these needs are met, we map out your other goals accordingly and understand the path to achieving them. The hierarchies of wealth include:

  • Emergency Savings – Do you have enough money to cover living expenses during a time of unemployment or large emergency expenditures?
  • Financial Independence – Can your portfolio sustain you and your family through your life and retirement?
  • Social Impact – Are you able to provide assistance to family members or give to your desired charitable organizations?
  • Large Purchases – Do you have a plan for how to purchase your dream vacation home or an extended international trip?
  • Entrepreneurial Capital – Do you have riskier investment opportunities you want to pursue or a business you want to start?

Without a clear framework for how to organize the various puzzle pieces in your financial life, it’s easy to get off track. Durbin Bennett, Austin, can help you stay on the path to building wealth for your family and generations to come.

Reduce Financial Risk with Diversified Investments

Far too often we see clients with either portfolios that take on unnecessary risk by investing in single companies or sectors, or ones that focus solely on chasing returns. Our investment team relies on data-driven research to formulate diversified portfolios for your particular goals and needs.  Our objective is to help reduce your risk without reducing your expected return. In addition to publicly traded equities and fixed income, we provide access to highly vetted and researched private investments to further diversify outside of the public markets. Broadly diversified investments are truly the fuel that will help you reach your financial goals.

Contact our Austin Office to Implement Risk Management to your Portfolio Today

To learn more about our risk management strategies and how your portfolio could benefit call or fill out our form.

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