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We believe in the financial planning process. This is the process of identifying goals, gathering and reviewing financial data, and designing and implementing a plan to help you reach your objectives. It is a lifelong process. Once the plan is in place, it needs to be monitored, reviewed and updated to meet dynamic circumstances. Not everyone needs to have a written comprehensive financial plan. Everyone, however, can benefit from the financial planning process.
Investment Objectives There is no one particular investment portfolio that is appropriate for all individual investors. The optimal portfolio will depend on the amount and timing of cash flow needs, tax considerations and market conditions. Investment decisions should be based, therefore, on your objectives. Through that objective-driven process, crucial factors such as appropriate levels of risk and return are derived and optimized to achieve those objectives.
Investment Strategy and Asset Allocation Though certainly an important one, investing is only one component of financial planning. Our recommendations and investment advice are a direct result of the planning process. The investment strategy and asset allocation we design for you can only be done after the initial financial planning process is complete and expectations are discussed and established.
Rather than follow short-term fads, we rely on our own research to find well-managed investments for our clients. We allocate assets among the major classes of cash, stocks, and bonds utilizing either individual issues or mutual funds as appropriate. Stocks and stock funds are divided between domestic and foreign as well as large, mid and small capitalization. We further divide stocks and stock funds into growth and value styles. Bonds and bond funds are divided by duration and credit quality.
As a part of your portfolio management service, every three months you receive a written portfolio performance report which gives you a clear picture of your financial position. We are available to meet with you as needed to review your financial position, goals, and performance report.
Tax Sensitivity Taxes represent a significant consideration for every long-term investor. By minimizing income taxes, you retain more wealth to help meet your goals. We exercise care in the appropriate placement of your investments within taxable and tax-deferred accounts. For example, tax-managed or tax-efficient vehicles may be placed in taxable accounts and higher turnover mutual funds in tax-deferred accounts.
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