This is where we start. Every individual has a different relationship with and understanding of risk. How much risk do you need to take in order to achieve your goals? And what keeps you up at night? We value transparency and trust, so at this point you can expect to have a real conversation with us about your experience with and attitudes about money and investments. Rather than a one size fits all plan, we spend time listening to your unique story, and then helping you understand your perception and the reality of the risks in your financial life.
What is the purpose of your funds? What job do they need to do and when? By creating a personal investment policy statement, we structure a portfolio aligned with your long-term plans rather than unreliable, short term stock market activity. Once in place, we use a strategic allocation informed by firms like Morningstar, Vanguard and Raymond James. This is reviewed and updated annually to account for changes in long-term assumptions like inflation, interest rates and economic growth; and the impact they might have on risk and expected return.
We create a portfolio of time-tested, trustworthy managers proven to be good stewards of capital. We choose both active and passive portfolio managers that invest in their own funds and focus on controlling costs. We look for firms who put the right incentives in place for portfolio managers, so they can focus on long-term results without taking unnecessary risks for potential short-term reward. By partnering with Raymond James and Morningstar, we filter the thousands of options, creating a select list of trusted investment managers.
A good plan is like a GPS: it tells us when we’re off course. And as an investment portfolio grows, certain assets might grow faster than others and can begin to increase the risk of the portfolio. Rebalancing your account sells from the assets that have grown faster and buys those that are cheaper. But how often is enough? According to Vanguard’s research, more activity in your account won’t result in better risk adjusted returns, and often results in higher taxes. That’s why we rebalance all portfolios every year, favoring discipline over frequent trading.