4 Step Wealth Management Process

1. Discovery - what's important to you – family profile, mission statement and identification/definition of aspirations
• Goals, objectives, motivations
• Risk assessment and prioritization
2. Unification of objectives across team – alignment of client and support team
• Family meetings, alignment of family interests
• Team meetings, alignment of professionals that support family
3. Strategic Plan – financial plan and investment plan
• Plans – base case with scenario planning
• Strategic – stress tested and forecasted, optimized
• Tactical – implemented risk budget with portfolio tilting to assimilate the current market environments
4. Ongoing Oversight, Management and Strategic Planning
• Monitor performance of your assets to your plan
• Make adjustment and alignment to targets, and ongoing financial planning
• Strategic and tactical investment management evolution

Ingredients

Modern Portfolio Theory - Based on Nobel Prize-winning research, we will construct a diversified portfolio that aligns your investment portfolio to your risk profile.

For every level of risk, there is an optimal way to structure a portfolio to maximize the expected return. We will craft an optimized retirement portfolio for you. We will help you manage your portfolio to accommodate market volatility, changing market prospects, and changes in your goals, risk tolerance and planning horizon.

Asset Location – We will reposition your assets in the appropriate investment accounts—e.g., 401(k), taxable account, Roth IRA—to enhance your portfolio’s risk-adjusted returns.

Having a diversified mix of equities and bonds is a critical element of managing your portfolio’s risk. However, this doesn’t mean you should have both equities and bonds in each account—i.e., 401(k), Roth IRA, and taxable accounts. To the contrary, it is better to “locate” each asset in the account that will enhance your portfolio’s risk-adjusted returns and thus lengthen its longevity. We still maintain your portfolio’s target risk level and appropriate asset allocation for you, but we carefully move or re-locate assets into the appropriate account.

Core and Satellite - A strategy we implement to maximize return potential for each level of risk within an optimized portfolio.

We construct "core" or passively managed, indexed portfolio that tracks core equity and fixed income benchmarks. We also construct and align "Satellite" or actively managed portfolios to enhance expected returns. These actively managed portfolio are designed to drive "after tax alpha" or returns beyond a benchmark. A leading investment bank recently stated the result of this strategy is “more efficient portfolio construction with higher return potential and increase diversification.”