Investment Planning    Services List

Definition:
To help our clients develop, implement and monitor an investment philosophy for each category of their investments- personal portfolio, 401(k) or equivalent and investment in their business.

Benefits:
Improved investment performance and increased asset value. By regularly monitoring investment performance, you are able to make timely decisions to correct under-performing assets and assess proper asset allocation.

Process:

• Determine current value of each investment category.
• Determine current rates of return for each investment category.
• Discuss, with the client, their risk tolerance for each category of investment.
• Assist with developing investment performance measures for each category.
• Meet with client and investment advisor to set up portfolio based on risk tolerance and targeted rates of return.
• Assess the performance of any investment in a business and determine if business development planning is required.
• Evaluate action plans periodically.

Case Example:
A retired executive had met with a financial planning firm. In meeting with them, a personal financial statement (PFS) was prepared, and some investment decisions were executed. When we met with him, we asked about the rates of return his investments were receiving and how his portfolio was structured. Through our inquiry, the client said he felt the returns were satisfactory. The client noted his current portfolio was 70% equity and 30% bonds, but was originally set up as 60/40. We also noted the client had a substantial investment in the stock of the company from which he retired. Our observation and inquiries brought up two points: his total portfolio was not including his company stock as it should, and when including it, his portfolio actually consisted of 90% equities and 10% bonds. Our recommendations were to sell of some of the equities to get back to his original investment objective of 60/40 and to partially liquidate the large investment in reduce his concentration and risk with such a large investment in one equity. His overall portfolio would now be balanced to achieve the 60/40 split the client originally established.