Louis Barajas, a financial planner based in Santa Fe Springs, California, looks back at the 2001-2002 market year and sees diversification as the main benefit of an investment planning strategy.

Louis Barajas

“A properly diversified portfolio, in our case, was down only about 6 percent that year in a year where you saw a double-digit drop on most markets; explains Barajas, a planner who works with primarily middle-income clients in the Hispanic community. “What planners can do is get to know the client, his long· and short-term goals, and design an investment strategy that will deliver the most realistic reward with the least amount of risk.”

At his firm, Barajas and his staff do PowerPoint pre­sentations and one-on-one discussions with clients to determine their investment goals and risk tolerance, and then design an investment plan around that.

“You want to keep the client away from ‘investment noise’ ­whatever is hot at the moment; he explains. “Planners, unlike a lot of financial professionals, have the chance to get to know the financial DNA of the people they serve, and that produces investment strategies they’re comfortable with.”