We provide a detailed risk tolerance assessment for our clients to complete. Upon evaluating the results of this assessment, we appropriately allocate investments. We monitor the level of concentration and diversification in the portfolio at a geographic, sector and single stock level and make recommendations accordingly.
We review the outstanding debt ranging from credit card to mortgage and everything in between. We analyse various factors and work with clients to develop a plan to most effectively manage this debt.
We evaluate what education funds will be needed based on projected costs of higher education, depending on when the funds will be needed and what type of school is intended. Once we establish the funds that will be needed, we do an in depth analysis of funding these needs and what planning opportunities are available.
We utilise state-of-the-art software to project retirement costs and develop a plan that optimises the likelihood for our clients to enjoy their retirement years. This plan will include maximising various “retirement” accounts and options to maximise social security benefits.
Cash Flow Planning
We analyse our client’s’ current expenses and annual budget to assure we are making appropriate assumptions in our financial plan. Also, we project long term cash flows to help clients visualise their opportunities and needs.
While we are not accountants, we provide services to assist in projecting tax costs and make sure our clients are properly filing and receiving sound tax advice from their tax professional. Also, we manage investments and make retirement saving recommendations based upon each client’s particular tax situation.
Insurance Needs Analysis
We review all insurance coverage and make recommendations based on individualised risk tolerance and financial circumstances.
Estate Needs Analysis
We provide an overview of estate needs and, if needed, provide references for qualified attorneys to make sure the client’s needs are covered.
Business Succession Planning
We discuss our clients’ intentions on their business interests and review the alternatives. If applicable, we will provide references for qualified attorneys to address these needs.
Our approach is to properly assess a client’s risk tolerance, create a custom allocation model that reflects the client’s objectives and tolerance, manage the portfolio in a cost and tax efficient manner and finally re-examine and adjust the model as a client needs or expectations shift. We believe that optimal long term investor performance can be accomplished through understanding client objectives and managing the portfolio with a long term perspective. We engage the latest technology resources to enhance the process from understanding clients needs and tolerance, portfolio recommendation, implementation, re-balancing and future modifications.
Client Risk Tolerance and Objectives
We use the Iress Risk Profiler to pinpoint a Risk Profile. This approach identifies the actual investment risk a client is willing to accept. Having this information provides multiple benefits for discussion and decision making.
Unbiased and Fiduciary Portfolio Creation
We provide unbiased advice based on a client’s particular needs. We examine a wide range of potential investments to identify what products will best create a portfolio that reflects our client’s individual needs. Primary screening includes but is not limited to independent research, manager quality, cost, and tax efficiency. Our core belief is disciplined investing in a cost and tax efficient manner is most beneficial to our clients.
Once the proper allocation and account placement are selected, we utilise the latest technology to implement the portfolio. Upon implementation, we utilise the technology to monitor the weightings and alert to rebalance opportunities and potential tax harvesting opportunities.
Portfolios are monitored on a daily basis for rebalancing opportunities. We require at minimum an annual update to re-evaluate risk tolerance, any life changes or any life goal changes. We reflect any changes in the profile into a portfolio adjustment proposal and examine the effects of the changes on a tax basis, cost basis, and expected return and yield basis.
This complimentary meeting is to discuss the prospective client’s needs, describe the services that we provide and define the responsibilities and expectations of both the advisor and the client. The relationship and timeline is defined at this stage. If agreeable to both parties, an advisory contract will be signed by both parties.
To begin the planning process, we will collect various data to ensure an appropriate framework. Most of the data gathering can be collected electronically; although, some information may include paperwork that will be collected in person or by mail.
Once all data has been gathered, we will create a financial plan, which includes an action list and maximises the likelihood of long-term life goal success. The plan will include recommendations for investment allocations based upon the client’s risk tolerance and needs.
During this meeting, we will review the proposed plan and make adjustments, if necessary, based upon our review. Responsibilities are assigned for various functions in executing the agreed upon plans.
During this phase, all action items will be addressed in an appropriate timeliness. This is the stage where all of the work and preparation is put into motion. Different action items will have have different time frames. We will work with the client to insure that all items are addressed at the appropriate time.
The monitoring stage begins as soon as the first action item of the plan is carried out. Monitoring includes making sure the recommended plan is carried out and also ensuring that any material facts that could alter the plan are well communicated. Both the advisor and the client have various responsibilities in monitoring the plan.
We require a meeting at least annually to update risk tolerance, changes in long-term goals, lifestyle changes and update the plan. The meeting can be done either in person or virtually and will normally last 1-2 hours. We also recommend at least one informal update every six months to ensure both advisor and client are on the same page and the plan is still appropriate. The semi-annual update is less formal and can be done in person, virtual or over the phone and normally lasts about 30 to 60 minutes. If preferable to the client, we are available and enjoy the opportunity to meet more frequently. Lastly, we recommend any material life change to be communicated immediately.
We offer a customised retainer model dependent on the services needed and the complexity of the plan. Clients receive full financial planning services, including investment advice. Please refer to our Financial Services Guide.