What We Do and How We Do it

As fee-based advisers, when engaged to do so, we (in consultation with your legal and accounting professionals) follow the traditional financial planning protocol:

  1. Establish goals and objectives
  2. Risk Management (Insurance)
  3. Investment Planning
  4. Income Tax Planning
  5. Retirement Planning
  6. Estate Planning 

However, what we do best and do most is Step 3 (Investment Planning).

In the Investment Planning Process we seek to design (or redesign) portfolios which potentially obtain targeted after tax returns with measured risk.

Our goal is to structure (or restructure) your portfolio to obtain an optimal balance between risk and reward. We diversify your exposure to various asset classes to, hopefully, align your portfolio on an optimal (theoretical) efficient frontier. 

Our process is based, in part, upon the works of Nobel Laureates, Harry Markowitz, Merton Miller and William Sharpe. We also invest globally, in proportions which more closely mirror the world’s capital markets. 

The steps we take in designing portfolios are:

Assess your risk/reward tolerance and time horizon limitations
Create an Investment Policy Statement
Create an Asset Allocation Model based upon items 1&2
Compare your existing portfolio to the targeted portfolio (using MPT tools).
Collect and record tax basis information
Research and review your existing holdings and make recommendations
Over time, in a tax-sensitive manner, rebalance the portfolio to attain the targeted allocation. (Caveat: see Austin’s Principle No 7)
Conduct quarterly reviews
Rebalance the portfolio over time, as needed
Conduct broad annual reviews (in person, when feasible)

There is no assurance that these objectives will be met, but we will try diligently.