INVESTMENT PLANNING*
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The Trust and Investment Management Group provides investment planning for any life stage. From retirement planning to basic investing, it’s easier to invest at Century Bank and Trust.

Good investment planning can turn your goals from dreams to realities. This is more than just picking the right investment. How you allocate your money among different types of investments can have a greater effect on your success than the individual investments you choose. The Trust Department of Century Bank and Trust utilizes a variety of investment options including- stocks, bonds, mutual funds, real estate, specialized securities and more in order to provide customers with superior investment management.

 

Understanding Risk and Return

To have a successful investment plan, you must understand the relationship between  investment risk and return.  In the planning process, you need to realize your investment time frame and determine how much risk you can tolerate during that period in order to reach the required return needed to achieve your target amount.  Generally, investments with higher risk have more potential for earning higher returns.

Understanding Risk Pyramid

  • Receive a tailored asset allocation mix for your specific needs.  Understanding your objectives, income requirements, tax status and personal attitudes so your portfolio will meet every market challenge and opportunity by being well diversified is the Trust Department’s primary focus.
  • Trust services are not transaction based.  By linking the fee to the market value of your accounts, we are able to provide you with sound advice. With no financial stake in promoting any particular investment, the Century Bank Trust Department keeps your best interest on the front line.

 

The Importance of Diversification

 Diversification Importance  
 
With a well diversified account, you are minimizing your risk with any one investment.  A portfolio can also be diversified into different mutual fund investment strategies, stocks, bonds, and cash equivalents. When a portfolio includes investments with varied risk levels, large losses in one area are offset by other areas.  Varying your securities by industry or by geography will also minimize the impact of industry- or location-specific risks.

 

Asset Allocation

Asset allocation is based on the idea that in different years a different asset is the best-performing one. It is difficult to predict which asset will perform best in a given year.  Having a mixture of asset classes is more likely to meet the investor's wishes in terms of amount of risk and possible returns.

Examples of Assets Equity Breakdown
  • Cash
  • Bonds
  • Stocks
  • Real Estate
  • Precious metals
Size:
Large-cap
Mid-cap
Small-cap
Style:
Growth
Blend
Value

 

Re-Balancing

 Re-Balancing Investments  
As you track your investment results, it is good to compare your current asset allocation to your original plan.  Gains or losses in one type of asset may change your allocation.  As a result, you may be exposed to more or less risk than you had intended.  You can easily restore your original risk level by adjusting your allocation but keep in mind that re-balancing may have tax consequences. 
  • Century Bank and Trust can assist you with a lifetime of personal financial planning needs and the planning doesn’t stop after one meeting. 
  • Our services are not transaction based.  By linking the fee to the market value of your accounts, we are able to provide you with sound advice.  With no financial stake in promoting any particular investment, we keep your best interest on the front line.
  • Choose between a fully managed account with us and/or an account where you make the investment decisions.  Whatever your needs, we will accommodate!