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.
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