Our focus is on long-term goals. We start by understanding your long and short term financial needs, patience for risk, and tax situation. Only after we understand your financial picture, are we able to develop a unique plan for you.
Once we have your unique plan, we are able to develop a monitoring plan and review schedule.
Our Process consists of the following steps:
- Understanding your Objectives
- Develop your Unique Plan outline
- Evaluate your current Investments
- Finish the Details on your Unique Plan
- Monitor your Portfolio
- Review your Plan
1. Understanding your Objectives
Each individual has unique objectives which encompass your goals, time horizon, patience for risk, tax situation, etc. This is a detailed way of saying your life and dreams are impossible to quantify, but we’re going to try anyway.
- Patience for risk – Many Investment people call this risk tolerance. This means what is your ability, need or willingness to accept losses when purchasing an investment.
- Time Horizon – This is a fancy way of saying when are we planning on using the saved assets. Is this for college? A wedding? Retirement?
- Liquidity – the need to quickly convert an investment into cash
- Unique considerations – What else do we need to know to define who you are and what you are going to accomplish?
We will never be able to know all of your objectives, but we are looking forward to taking the time to understand as many as possible.
2. Develop your Unique Plan outline
Once we have a better understanding of you and your dreams, we are able to construct a general plan. This outline is used as a foundation for us to follow, and we will continue to adjust this outline as your life adjusts.
3. Evaluate your current Investments
Your current investments are reviewed to determine which assets will work for your Unique Plan.
4. Finish the Details on your Unique Plan
Now we select the specific investment vehicles to fulfill your Unique Plan. This is achieved by asset allocation and asset location.
Our process for Asset Allocation is to start big and move small. What we mean by this is to decide first the overall balance between Equity and Fixed Assets. Next we decide size of companies and duration of bonds. This continues until we have a portfolio designed specifically for you.
Asset Location is an offset from Allocation. The concept of Asset Location is to strategically place your investments in taxable, tax deferred, or tax free accounts to receive the most from your Plan.
5. Monitor your Portfolio
We are constantly updating our Allocation plan and discussing with you your goals and dreams. Every day something changes and after enough change we need to update.
6. Review your Plan
We will set up a schedule that is appropriate with you to determine the frequency we need to discuss your Unique Plan. Because our process never truly has an ending, just like your story keeps on evolving.
