Our Investment Philosophy, Risk Methodology, Investment Models

As the saying goes in carpentry, “measure twice and cut once.” In financial planning, as in carpentry, deliberate and thorough preparation is crucial in the prevention of mistakes and waste.

First and foremost…Before we begin to give purpose and vision to your wealth strategy, it is essential for us to know both your “why,” your personal values, as well as your financial goals, and of course, the assets that you bring to the experience. Understanding your “why” – that is those you love, your values, and aspirations – will allow us to create a relevant action plan to provide a confident financial future for you and your family.

Next, it is important to understand your “risk score.”

We find this question is one of the most common we hear from our clients, and also one of the most important. So, how do you know if your portfolio is structured properly? There has to be something more than an advisor just telling you everything is ok. There has to be a more scientific and objective way to evaluate your portfolio. Because this is so critical to our clients’ success, we have made it a priority in our practice.

As advisors, we can do many things. We can help identify goals and prepare financial plans to accomplish those goals. We can create and maintain diversified investment portfolios. But we CAN’T change your risk profile.

What do we mean? Few people have a problem with risk when the market is rising. It’s when our portfolios are moving in the opposite direction that we become uncomfortable. So, when we talk about risk, we really mean “How much short-term volatility are you willing to accept in order to realize the long-term gains you are hoping for?” This risk/return tradeoff is unique to you and understanding your expectations is critical if we want to serve you well.

Then will then develop a customized, personal asset allocation where your assets will be segmented into “buckets,” based on time segmentation, in other words, when you will need to access your money.

In most cases, the greatest risk to your capital comes from not understanding your “time-horizon,” that is WHEN you will need to use your money. Time horizon management is the most important factor in managing risk. Our approach effectively addresses this challenge (click segmenting your ‘buckets’ of money below).

Only then, based on your time horizon (when you will need the $) and your tolerance for volatility, will we deploy your assets one of our 10 proprietary investment models.

Through our strong partnerships with some of the most experienced, and trusted asset managers in the world, such as Goldman Sachs, Blackrock, Vanguard, Prudential, Federated Investors, and Voya, we have built robust and diversified investment models (a select mix of various investments). We blend a mix of assets that are able to capture the majority of the “upside” (rising markets), with a much more limited “downside” (falling markets).

We cannot predict, nor do we care to predict, what the stock or bond market will do. However, the benefit of our investment approach is that based on your tolerance for for volatility and time horizon, we are able to select one of our models, and in doing so, understand how your portfolio will react to market movements, thereby providing you with highly predictable outcomes, and a greater peace of mind.

We want to hear your story.

Schedule a meeting with us.