Investment management in Knoxville means more than picking investments. A thoughtful approach starts with your goals, builds a portfolio designed around them, and follows a consistent process through changing markets. For many investors, that discipline can be just as important as any single investment decision.
We utilize disciplined investing to achieve each client's individual money mission and provide reassurance and continuity for our clients' legacies. This article explains what investment management involves, the building blocks of a disciplined process, and questions to ask when choosing a firm to manage your investments.
What Is Investment Management?
Investment management is the ongoing process of building, monitoring, and adjusting a portfolio to pursue specific goals. It typically includes deciding how to allocate assets, selecting investments, managing risk, and reviewing results over time.
Investment Management for Individuals and Families
For private clients, investment management may focus on goals such as retirement income, funding education, building wealth across generations, or supporting charitable giving.
Investment Management for Nonprofits
Foundations and endowments often have their own considerations, such as spending policies, long time horizons, and mission-aligned investing. Their portfolios may need to support both current programs and future generations.
The Building Blocks of Disciplined Investing
A disciplined investment process helps decisions stay consistent and connected to your plan.
Start with Your Goals
Every portfolio decision should connect to a purpose. Questions to consider include:
What is the money for? Retirement, legacy, philanthropy, or a near term need.
When will you need it? Your time horizon shapes how much risk may be appropriate.
How much fluctuation can you accept? Your comfort with risk matters as much as your capacity for it.
Asset Allocation
Asset allocation is the mix of stocks, bonds, cash, and other investments in a portfolio. It is often one of the most important decisions in investment management, because it shapes both potential growth and potential volatility.
Diversification
Diversification means spreading investments across different asset classes, sectors, and regions. It can help reduce the impact of any single investment on your portfolio. Diversification does not ensure a profit or protect against loss.
Rebalancing
Over time, some investments grow faster than others, causing your portfolio to drift from its target. Rebalancing brings it back in line, which can help keep risk consistent with your plan.
Tax Awareness
Asset location: Holding investments in the types of accounts where they may be taxed most efficiently.
Managing gains and losses: Being thoughtful about when to realize gains and whether to harvest losses.
Withdrawal planning: Coordinating which accounts to draw from in retirement.
Cost Awareness
Investment costs, including fund expenses and trading costs, can reduce what you keep over time. Understanding all costs is part of disciplined investing.
Why Discipline Matters in Changing Markets
Markets move up and down, sometimes sharply. Without a plan, it can be tempting to react to headlines.
Common Behavioral Traps
Chasing performance: Buying what has recently done well.
Panic selling: Selling during declines out of fear.
Overconfidence: Making large bets based on predictions.
How a Process Can Help
A written strategy, regular reviews, and clear rules for rebalancing can help you stay focused on long-term goals instead of short term noise. Past performance is not indicative of future results.
What an Investment Policy Statement Can Do
Some investors and many nonprofits use an investment policy statement. This document outlines:
Objectives: What the portfolio is meant to achieve.
Risk tolerance: How much volatility is acceptable.
Asset allocation targets: The intended mix of investments.
Rebalancing guidelines: When and how adjustments are made.
Review schedule: How often performance and strategy are reviewed.
Having these guidelines in writing can promote consistency and accountability.
Questions to Ask an Investment Management Firm in Knoxville
How do you build portfolios? Ask about the firm's investment philosophy and process.
How do you manage risk? Learn how risk is measured and controlled.
How do you handle taxes? Ask about tax aware strategies in taxable accounts.
How will you report to me? Understand what reports you will receive and how often.
How does investing connect to my plan? Investment decisions should reflect your broader financial picture.
Are you a fiduciary? Ask whether the firm is required to act in your best interest.
How Investment Management Connects to Your Financial Plan
Investments are one tool for reaching your goals. At ProffittGoodson, we look at investment planning alongside tax strategies and estate considerations, so that each part of your financial life supports the others. You can read more about how investment planning connects to retirement strategy.
The ProffittGoodson Approach to Investment Management
ProffittGoodson offers personalized wealth planning, investment strategies, and financial coaching. Our work begins with gaining a deep understanding of your financial life.
Our approach is built around multidimensional service, disciplined investing, and clarifying counsel:
Understanding you first: Learning your goals before making recommendations.
Connecting money to meaning: Aligning your money decisions with your life goals.
Objective guidance: Recommendations guided by the objective of supporting your long-term goals, without the influence of hidden motivations.
To learn more, visit the ProffittGoodson home page or learn about our work with nonprofits.
Who We Serve in Knoxville and East Tennessee
ProffittGoodson Private Wealth works with private clients and nonprofits. We offer personalized financial planning in Knoxville and East Tennessee for multigenerational families, business owners, women managing wealth, retirees, foundations and endowments, and trusts and estates.
Visit our Who We Serve page or meet our team.
Start the Conversation
A disciplined approach to investing can help keep your portfolio focused on what matters most to you. If you would like to talk about your investment strategy and goals, we invite you to contact ProffittGoodson. You can also join our Wealth Journal for monthly financial market perspectives and wealth management insights from our team.
Frequently Asked Questions
What does an investment manager do?
An investment manager builds, monitors, and adjusts a portfolio to pursue specific goals. This typically includes asset allocation, investment selection, risk management, and rebalancing.
What is disciplined investing?
Disciplined investing means following a consistent, goal based process rather than reacting to short term market moves or headlines.
How often should a portfolio be rebalanced?
Some investors rebalance on a set schedule, such as once or twice a year, while others rebalance when allocations drift by a set amount.
What is the difference between investment management and wealth management?
Investment management focuses on the portfolio. Wealth management often includes investment management along with financial planning, tax strategies, and estate considerations.
Do nonprofits need investment management?
Many foundations and endowments use investment management to support spending needs, long time horizons, and mission-aligned investing goals.
What is an investment policy statement?
An investment policy statement is a written document that outlines a portfolio's objectives, risk tolerance, asset allocation targets, rebalancing guidelines, and review schedule.
ProffittGoodson Private Wealth provides this content for informational and educational purposes only. It is not intended as, and should not be relied on as, individualized investment, tax, or legal advice. Tax laws are complex and subject to change; please consult a qualified tax professional regarding your specific situation. All investing involves risk, including the possible loss of principal. No strategy can guarantee a profit or protect against loss. Past performance is not indicative of future results. Please refer to the firm's Form ADV and disclosures for additional important information.
DISCLOSURES: The information provided in this letter is for general informational purposes only and should not be considered an individualized recommendation of any particular security, strategy, or investment product, and should not be construed as investment, legal, or tax advice. Proffitt & Goodson, Inc. makes no warranties with regard to the information or results obtained by third parties and its use and disclaims any liability arising out of, or reliance on the information. The information is subject to change and, although based on information that Proffitt & Goodson, Inc. considers reliable, it is not guaranteed as to accuracy or completeness. Source information is obtained from independent financial data suppliers (Interactive Data Corporation, Morningstar, etc.). The Market Categories illustrated in this Financial Market Summary are indexes of specific equity, fixed income, or other categories. An index reflects the underlying securities in a particular selection of securities picked due to a particular type of investment. These indexes account for the reinvestment of dividends and other income but do not account for any transaction, custody, tax, or management fees encountered in real life. To that extent, these index numbers are artificial and cannot be duplicated in real life due to the necessity of paying those transaction, custody, tax, and management fees. Industry and specific sector returns (technology, utilities, etc.) do not account for the reinvestment of dividends or other income. Future events will cause these historical rates of return to be different in the future with the potential for loss as well as profit. Specific indexes may change their definition of particular security types included over time. These indexes reflect investments for a limited period of time and do not reflect performance in different economic or market cycles and are not intended to reflect the actual outcomes of any client of Proffitt & Goodson, Inc. Past performance does not guarantee future results.