Because every client is unique, each financial plan is tailored to his or her unique circumstances. Portfolios are custom built for each client, with the focus on long-term performance and meeting personal objectives that include making investments as efficient as possible. This approach is time consuming, but experience shows there is no substitute.
We review the client's financial data in order to understand the current situation. This includes any brokerage or bank statements, insurance policies, and existing estate plans.
To help with portfolio design, we will ask many questions regarding risk and engage in a thorough discussion to address two separate components of risk - risk tolerance, or how one feels about risk, and risk capacity, which is one's financial ability to handle losses without adversely affecting future goals and living standards. We strongly believe that a complete, two-way conversation – not a standard multiple-choice-questionnaire approach – helps us understand how to serve our clients best.
Client-provided information: Bank and brokerage statements, insurance policies, estate planning documents
Outcome: Financial Objectives Statement that will drive the portfolio design
- The client's financial objectives,
- A summary of his or her current financial situation,
- An overall strategy that states in broad terms our recommendations for meeting the client's objectives,
- Specific strategies that give detailed guidance on how objectives should be achieved,
- A prioritized list of financial planning needs, and
- An asset allocation for investments, based on the client's objectives, risk tolerance and risk capacity.
The document will be reviewed together, and any changes will be incorporated before it is finalized.
An Investment Strategy and Policy Statement is a living document that will change as the client's situation and goals change. However, this is a process that is accomplished slowly and deliberately. Any significant deviation from the Investment Strategy and Policy Statement should be discussed, and addressed if necessary.
Outcome: Investment Strategy and Policy Statement
We can manage assets at virtually any institution. We typically manage an entire portfolio, and our focus is on total return, regardless of where assets are held.
Outcome: Portfolio plan designed to meet your objectives
We believe implementation is crucial. During the Investment Strategy and Policy Statement drafting, we prioritize each client's financial planning needs based on his or her situation. We work with each client to complete each financial planning objective. We also work closely with our clients' other professional advisors as needed - legal or accounting experts, for example. We stay actively involved to make sure every part of the client's financial plan is executed completely and appropriately.
