Investment Philosophy
We have developed a straight forward, transparent, and efficient approach to investing that combines our core philosophies of Active Asset Allocation and Passive Implementation to build diversified, balanced portfolios.
The Client Investment Process
1. Strategic Planning
As your wealth manager, we evaluate your life needs by defining:
Expectations of Income
Tolerance for Risk
Horizon - Time
Income Tax
Constraints
Attitude towards communication
Liquidity
We then incorporate this information with your generational and philanthropic planning to build a long-term strategic plan, working hand in hand with your tax advisors and estate attorneys.
2. Determine Asset Allocation
Our basis for investing is predicated on diversification through sound asset allocation. Over time, the main drivers of your portfolio’s performance are the asset classes you own, (i.e. Cash, Fixed Income, or Equity), and when you owned them. Roughly 90% of your portfolio performance is driven by the asset allocation, while only 10% comes from security selection, (i.e. Coke vs. Pepsi).
1. We analyze and evaluate your current investment holdings, both liquid and illiquid, to determine your current risk exposures.
2. We then create an optimized solution for your overall asset allocation in order to balance your risk and investment return potential.
3. We define the appropriate levels of diversification among the various asset classes.
3. Implement Portfolio
We develop a thoughtful plan to implement the portfolio, taking into consideration:
- Potential Tax Consequences
- Outside holdings
- Asset location (allocating assets across various entities, such as an IRA)
- When appropriate, we use exchange traded funds (ETFs) due to their low cost, tax efficiency and liquidity.
4. Monitor and Rebalance
Over time, we apply periodic changes to the portfolio as we see opportunity to take advantage of market dislocations. We also monitor and rebalance the portfolio to maintain our target allocation and risk levels.
Start planning for tomorrow - call us today.