Investment management and financial planning go hand-in-hand, and completing the plan provides us the information we need to design the investment portfolio.
Our CFA Charterholders are responsible for designing portfolios, and we follow the CFA Institute’s list of factors to consider in putting together a portfolio. Those factors are:
- Risk tolerance, including the ability and willingness to take risk
- Return needs as outlined in the comprehensive plan
- Tax considerations, typically focused on maximizing after-tax returns
- Time horizon over which portfolio will fund needs
- Liquidity needs in the short-term
- Any other factors you ask us to consider (e.g. desire to maintain a specific holding or holdings, need to limit capital gains, etc.)
We document these factors in an Investment Policy Statement which provides you with a strategy that aligns with plan needs. Each portfolio is based on one of three model portfolios, although most client portfolios have some degree of customization.
Once the investment policy is in place, we formulate specific account-by-account recommendations and we implement those recommendations for our wealth management clients. We also manage the portfolios on an ongoing basis and make changes as needed to ensure the portfolio remains aligned with your needs.
The foundations of our approach as an investment advisor are our beliefs as well as our process, and more information about both is available here.
Years ago, one of the first courses I took in college was introduction to cognition, or the science of human thought. A key concept that stuck with me long after the course, was the idea of a heuristic – a mental rule of thumb – or shortcut, that we all use in certain...
I attended a conference on communications a few weeks ago run by Dimensional Fund Advisors. Dimensional, or DFA as they are known, has an interesting story. They were founded by academics, including a few Nobel Prize winners, who believed that beating the market...
If you’re considering working with a financial advisor, at some point, you’ll probably discuss the advisor’s investment track record. Most advisors aren’t going to offer a public track record of how they’ve done because unlike mutual fund or ETF managers, financial...