Discipline

Onyx Investments helps private individuals and institutions explore and leverage financial markets to improve long-term living standards. To do so, this company works to install a patient and disciplined approach within its client base. This successful formula towards success begins with the identification and prioritization of business, financial, and ultimately, life goals. From there, Onyx Investments can best engineer asset and insurance policy portfolios that balance risks versus rewards, as we create wealth bridging the gap between today’s realities and tomorrow’s ideal objectives. Onyx Investments promotes a conservative and disciplined approach to financial planning.

 

Setting Goals

 

Notable financial goals often relate to the financing of retirement, home ownership, higher education, and business expansion. Before fully committing to working towards long-term financial goals, of course, it is critical for Onyx Investments to help its clientele establish adequate cash reserves, strong credit ratings, and comprehensive insurance coverage. From there, the viability of all long-term financial goals will be addressed according to total costs and prospective time frame. For example, a middle class Chicago couple may need to compile more than $2 million in savings, before retiring comfortably to a South Florida condominium within the next 20 years.

 

Disciplined Saving

 

With a list of financial goals in hand, Onyx Investments can now estimate the amount of money that should be set aside monthly to meet your objectives. Savings projections will account for prospective inflation, taxes, and investment returns. Onyx Investments identifies the Standard and Poor’s 500 Index as an ideal benchmark for U.S. stock market performance. The S&P 500 Index is a market-weighted average featuring many of America’s largest publicly traded corporations. In order to manage expectations, all planning clients should recognize that the S&P 500 Index has averaged 11 percent returns since its 1957 inception.

 

Classifying Investments

 

Taken further, informed clients will differentiate between equity and credit securities. Shares of stock, small businesses, and real estate are equity holdings because they carry ownership rights. Equities feature a relatively volatile risk versus reward profile. In theory, share prices for individual stocks can swing between zero and infinity, alongside corporate profits.

 

Credit securities include bonds and money market assets. As a creditor, you are loaning out money to corporate and government institutions for set periods of time. In exchange for making out these loans, you earn interest payments on credit securities. Credit securities feature senior asset claims above equities. Amid bankruptcy, a corporation must pay bondholders first from the proceeds of any forced asset liquidations. Credit securities, of course, are susceptible to inflation risks that erode purchasing power.

 

Tax Considerations

 

All investments introduce important tax ramifications that subtract away from your bottom line. You will generally owe taxes on both investment income and realized capital gains. Investment income describes interest and dividend payments. Meanwhile, capital gains are actually realized after the sale of an investment. Tax law benefits long-term investors. Retirement accounts, such as Traditional IRA, Roth IRA, and 401(k) plans provide for tax-deferred growth, until you make withdrawals. Retirement account withdrawals made before the age of 59 ½, however, may be subject to a 10 percent tax penalty. The goal at Onyx Investments, of course, remains to maximize total and real returns for our clients, rather than to simply save them money on taxes.

 

Investment Strategy

 

Onyx Investments recommends diversification as a strategy to both manage financial risk and provide for growth. Diversification allows you to turn a profit in various economic scenarios. A diversified portfolio may include U.S. stocks and bonds alongside international investments. Amid domestic recession, conservative U.S. stocks and bonds, in conjunction with overseas investments should stabilize the portfolio. When the U.S. economy inevitably recovers, aggressive American stock positions will turn in strong gains. Through ironclad discipline, we typically reject short-term asset management fads at Onyx Investments.

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