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Investments

National offers access to 14,000+ Mutual Funds, Independent Money Manager Accounts, Best of Breed Hedge Fund Managers, Private Equity and Venture Capital Funds and Real Estate Limited Partnerships.

Financial Planning and Asset Management

Through National Asset Management, Inc., a Registered Investment Adviser and wholly owned subsidiary of National Securities Corporation, we offer access to a comprehensive, goal-oriented financial planning platform that works as easily for investment portfolios worth $100 million as it does for $100,000. With our clearing arrangement with National Financial Services LLC, Member NYSE/SIPC, a Fidelity Investments® company, we offer a turn-key solution that can be customized to an individual’s specific needs. Specific program accountability features include annual return targets and quarterly reviews.

The Importance of Asset Allocation
Many investors believe that security selection and market timing are the primary components driving a portfolio’s performance, but these factors are only important when combined with a strategic asset allocation policy. A landmark study published by Brinson, Singer and Beebower in 1991 (and expanded in 1993) determined that portfolio asset allocation is the most important long-term determinant of investment results.

The Power of Compounding
Your money earns interest, and that interest earns interest, and that interest earns interest. That’s compounding. Its effect is amazing. The longer your money is invested, the better compounding works for you. Or, to put it another way, the earlier you start saving for retirement, the smaller the amount you will have to save to reach your goal.

For example, by starting sooner, staying on track and putting aside small amounts each month, you will be in a far better position to retire than people who make more money, but who neglect the most important aspect of investing – staring soon and staying on track.

The above graph illustrates the difference between 20-year-old Mary and 35-year-old John. They each invest $2,500 per year in a Registered Retirement Savings Plan and receive 10% as an annual rate of return. The only difference is when they start.

Mary begins to invest when she is 20 and stops completely 15 years later when she’s 35. She will have $1.6 million when she retires at 65. John, on the other hand, begins when he is 35. He puts aside the same amount as Mary, but for 30 years—that is twice as many years as she invests. John also retires when he is 65.

Yet in spite of having put aside twice as much money, over twice as many years, John winds up with only 1/3 of what Mary has. That’s because Mary took advantage of her most powerful investment tools—time and compounding.