Our process focuses on you and understanding your unique needs is our first priority. Our goal-based planning process includes an assessment of your long-term financial needs including: Investments, Cash Flow Analysis, Insurance, Retirement, Education Planning, Estate Planning, Philanthropy, and other needs specific to you. We can help you identify your financial goals and create a customized plan to help achieve them. We’ll work together with your CPA, attorney, insurance agent, and other advisors to develop and implement an appropriate strategy for your specific situation.
Establish Goals & Objectives
Every client is unique and it takes skill and experience to fully determine the goals and objectives for each person. Unlike some large financial firms that use an assembly line process to mass produce investment solutions, we think the time spent getting to know our clients is time well spent. To customize a plan specific to your needs, we must first know your personal values, interests, concerns, and motivations.
- Your Goals – Life is dynamic and your goals often change along the way. It’s important to consider these changes while maintaining a long-term focus. We’ll help you see the big picture while providing advice on your investments, cash flows, education funding, retirement planning, estate planning, philanthropy, and how family dynamics may impact each of these areas.
- Your Risk Tolerance – There are both quantitative and qualitative factors to consider in assessing your risk tolerance. Questionnaires can be helpful in the quantitative part, but dialogue provides important qualitative information crucial to assessing your complete risk profile. Risk tolerance may also be dynamic as life events sometimes change perspectives, so it’s important to periodically reaffirm or reassess your risk tolerance.
- We Can Help – It’s difficult to adequately assess your own goals and objectives. It’s helpful to have a financial advisor ask questions and offer different perspectives. We’ve worked with hundreds of clients from a broad spectrum of backgrounds over the years. Valuable information we’ve learned from working with some clients is often beneficial in advising other clients.
Our asset management capabilities separate us from firms that use basic asset allocation strategies. We have an experienced portfolio manager with expertise in tactical asset allocation and individual stock and bond portfolio management.
STRATEGIC ASSET ALLOCATION
This is the foundation of asset management and is crucial to goal-based financial planning. We endeavor to:
- Achieve attractive returns while managing risk and taxes.
- Be well-diversified with a careful mix of asset classes and disciplined rebalancing.
- Utilize both historical and forward-looking return and risk expectations.
TACTICAL ASSET ALLOCATION
While many firms provide only strategic asset allocation, we believe this overly simplistic approach decreases your change of meeting your investment objectives. For example, a firm that uses only strategic asset allocation may be assuming the expected return on your fixed income investments will be approximately the same as the long-term historical average. Clearly, the current interest rate environment is unlikely to provide that kind of return and investors relying purely on strategic asset allocation may experience insufficient returns to meet their needs.
This is just one current example of the need for tactical asset allocation. The actual returns and risks of each asset class often deviate from their long-term (strategic) expectations. We overweight asset classes that we believe have attractive risk/return characteristics on a forward-looking basis and tactically underweight asset classes that we believe are less attractive. We do this in a tax-efficient manner that does not expose clients to unnecessary turnover and capital gains. Please reference this chart of asset class returns over the last 20 years to see why tactical asset allocation is so important.
Mutual Funds – Passive, Active, Hybrid
Individual Stocks – Large Cap Blend, Equity Income
Individual Bonds – Tax-Exempt, Taxable