Investment Management begins with a review of your personal goals, both long- and short-term; your income resources and investment assets; and your overall tolerance for risk, as well as any other factors that might influence our determination of the best asset allocation for you.
In addition, we believe in not having all of our eggs in one basket, that is, many small risks are better than just a few big ones. As such, we like broad diversification, we predominantly utilize ETFs and mutual funds to help us to achieve this across all of our asset allocations and asset categories.
IPS/INVESTMENT POLICY STATEMENT
We will work together to create a custom IPS/Investment Policy Statement to document your unique situation. The IPS will address high level assumptions, your investment goals, and your individual risk tolerance. The IPS will document our selection of the appropriate asset allocation and portfolio for you.
ACCOUNT SET UP
We will help you complete the paperwork necessary to set up your new accounts at TD Ameritrade and to migrate your assets from their current custodians. This is a fairly simple and automated process and we will take you through it from beginning to end.
In addition, we will help you with reaching out to 401(k) plans, benefits providers, insurance companies, banks, etc. to consolidate and simplify your account structure. We like to keep things simple, the fewest accounts at the fewest custodians makes it as easy as possible to manage.
We'll examine your ability to take on investment risk, especially within the context of your need to assume that risk. We'll strive to balance the amount of investment risk you're comfortable with, against what's necessary to give you the best chance to meet your long-term financial goals.
For most we follow a passive approach, utilizing ETFs/exchange traded funds or low cost mutual funds designed to capture benchmark index returns. For some we incorporate actively managed mutual funds and/or individual stocks, as well.
The fund choices are based on a review of the mutual fund family, the individual fund manager and their overall track record across up and down markets. For stocks, the research focuses on the company's growth prospects, its dividend history, the stock's price volatility, etc.
We continuously monitor the investments and rebalance periodically throughout the year. The process of rebalancing keeps your asset allocation in line with our agreed upon strategy, and forces a discipline of "buying low and selling high."
FEES AND MINIMUMS
The fees are based on the amount of assets we manage and/or the amount of effort to manage those assets. We will work together to determine the appropriate fee level and approach for each individual circumstance.
There are no absolute minimum asset levels for our services, each situation will be evaluated individually. That said, the discretionary investment management approach generally works best for asset levels of at least $200,000 in managed assets. We are happy to work with you to come up with other fee approaches for smaller asset amounts.