Preserving Wealth
Portfolio Risk Management
Our investment process includes assessing and managing the risk exposures within a portfolio. Risk and return are at the heart of investing, but the key is isolating the risk factors that markets will compensate an investor for taking. We design customized portfolios based on personal objectives, time horizons, and circumstances with tolerance thresholds for ongoing rebalancing and management.
Bond Portfolio Services
Our philosophy is that equity investments are for growth while fixed income investing has a vital mission all of its own in the preservation of a portfolio. Fixed income can control overall volatility in a portfolio and provide a stable financial base. It should act as the vehicle for steady, reliable income and contingency reserves.
Bonds are usually seen as stable, low-risk investments; too often just an afterthought in investors’ holdings. They are supposed to be the “safe and sound” portion of your portfolio. But today’s fixed income market has grown increasingly complex, with hidden risks and unstable securities. Many people don’t understand what they are buying and most aren’t aware of the hidden costs. There are dozens of different bond types, some with high-risk profiles.
Individual investors may not recognize how risky bonds can be – they can be subject to defaults, downgrades, early calls and more. There are a variety of distinct risk factors that should be accounted for. Every detail is important to understanding a bond’s real value and overall characteristics.
The bond market is a price-negotiated market. With equities, you can quickly know the value of a security: simply check the Internet. With bonds, there is no centralized pricing information. Prices for the exact same issue can vary widely, depending upon the broker. True costs are easily hidden from individual investors, allowing brokers to place excessive markups and markdowns on their transactions. Brokerages generally sell bonds from a selection that is held in their inventory. This means that buyers don’t get a real picture of the selections available throughout the competitive market, and bonds in inventory usually carry a higher markup.
With this in mind, we create a quality, customized bond portfolio for clients with a substantial allocation to fixed income. We believe investors are entitled to objective, knowledgeable recommendations regarding bonds, bond fund selections and fixed income portfolio construction. And we think you deserve personal attention that matters.
We recommend a portfolio of only high-quality bonds, generally with short-term to intermediate-term maturities so your fixed income portfolio maintains its mission-critical stability.
Insurance
Some risks are best retained and others are best transferred by means of an insurance product. We advise clients on appropriate amounts of coverage and recommend ways to optimize policies to minimize costs and maximize tax efficiency. The following are objectives considered when evaluating the insurance needs of our clients:
- Income replacement for an untimely death or disability
- Liquidity in an estate to meet generational transfer objectives
- Resources to pay an anticipated estate tax liability
- Business continuity
- Financing long term care expenses
- Property and casualty loss recovery
For existing policies we perform a thorough review to assess amount, type, cost, funding, ownership, and quality of carrier, among other factors and make recommendations for any needed changes.
While we agree that watching your investments grow is a satisfying experience, we also understand that there is more to managing wealth than acquiring wealth. Understanding what’s important to you and building a plan to help you meet your unique goals are an integral part of our ongoing relationship.
Creating a plan and having the discipline to stick with it are a central part of our philosophy. Because of the uncertainties of life, we also feel it is important to recognize when to change that plan. By meeting regularly and reviewing your goals, we aim to identify those areas that may require modifying your unique plan.
