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.
The Economy and Markets What to Watch for During the Presidential Transition After a long and often bitter campaign, it appears more and more likely that Joe Biden will be sworn in as the 46th President of the United States on January 20. Democrats will also retain...
Recently a client asked how his portfolio was doing, and my answer was that he was doing well because the portfolio return over the last decade was above the return target he had established in his financial plan. So, after a decade of work, contributing to retirement...
In my experience, nearly every investor knows that having a diversified portfolio is something they should do. Diversification, investors understand, helps reduce risk. But there is less knowledge around what diversification actually means. I’ve heard investors say...