How We Do It
“Financial Planning” has become a universally used term for salespeople.
Unfortunately, when you are building a retirement portfolio, the last thing you need is to be “sold” anything. In an environment that encourages a buy-and-hold mentality, I’ve seen clients sit flat over decades. The Wall Street System has pampered advisors with lavish commissions while doing very little to actively manage the investments. The results have been dismal, with almost every mutual fund underperforming the SP500 while the fees keep Wall Street’s pockets lined. There are three primary pillars of great planning in the retirement market:
We’ll meet with you and Identify your Vision
Sharing a vision is the most important step in deciding what kind of advisory relationship is best for you. Whether you are trying to create a sustainable income stream for retirement, simply grow and preserve your nest egg, or design a financial legacy for your children, it is important that we have a clear vision before making any recommendations.
We’ll analyze your REAL risk tolerance and test your current portfolio against both good and bad market scenarios.
Only then can we revise the strategy to optimize gains and income flow, while mitigating losses and focusing on asset preservation. Once an agreement has been reached we can design and implement a portfolio that achieves your vision on a quantifiable basis.
We partner with Riskalyze, a company that quantifies the risk tolerance of every investor in a unique and innovative way built on decades of academic research. Together we translate risk tolerance into a math-based Risk Number. By using powerful risk analytics, we compare your risk preference with your actual portfolio risk. Then we Stress test your portfolio for a variety of stock and bond market scenarios. By completing the risk assessment and getting a true risk score will help us as we evaluate your long term goals and needs. This is the first step that we’re taking behind the scenes to ensure you’re invested correctly and so you’re set for your long term goals. What is your risk number?
We’ll monitor your progress and make changes when necessary.
True “active” management happens when we operate as a team, keeping tabs on the balances every single day, and communicating often. Remember, your vision is to successfully retire, and ours is to get you there beyond a shadow of doubt.