In the most recent blog post, we covered our definition of wealth management, which entails the following three components:

WM (Wealth Management) = IC (Investment Consulting) + AP (Advanced Planning) + RM (Relationship Management)

In this post, we’d like to cover the first component in the formula, which is investment consulting. For most people, and in fact for most financial advisors, investment consulting is the centerpiece of the relationship. It involves managing client assets, ideally with the goal of meeting or exceeding a planned return without taking on excess risks. Most client meetings and communications are centered around performance for the last quarter or perhaps for the last year.

We clearly recognize that investment consulting is a key part of the client relationship. After all, for nearly all clients, portfolio performance over the long term is key to meeting their financial goals.  Because of the importance of investment consulting, we’ve focused on gaining the necessary knowledge and experience and tying it all together with top notch research and a well defined investment process.

Nevertheless, unlike many advisors, we believe that investment consulting is just one piece of the overall relationship. Advanced planning and relationship management can be of equal or greater importance for many clients, and we’ll detail what that involves in future posts.