Our clients who partner with us for financial planning services will typically hire us to manage their investment portfolio as well. Drawing on our knowledge of investing and the capital markets, we will recommend suitable strategies and actively monitor their progress. As markets fluctuate and new milestones approach, adjustments will be made to keep you aligned with your financial objectives.
The individual investor is largely at the mercy of the markets and how they respond to political, economic, and psychological inputs to name a few. Therefore, it is our role to help our clients take control of the aspects of the planning process that are within their grasp. For example, the investing world offers many opportunities with significantly different costs to the investor. Since there is no empirical evidence that indicates more expensive investments outperform their low-cost counterparts, it is the opinion of the firm that low-cost investing should be pursued. Additionally, the individual investor can control the taxes they will pay as a result of the asset allocation decisions they make each year.
Investment Management goes far beyond asset allocation and the traditional buy and hold philosophy. We are tactical investors who seek out value in all asset classes. If an investment is determined to offer value, we purchase it for all of our investment management clients for which the investment is deemed appropriate. Clients are assured our best ideas are implemented in all accounts regardless of the size.
This proactive approach to security selection is carried through to our clients who work for, and own stock in, a public corporation. As part of our planning process we gain a full understanding of our clients equity ownership – including restricted stock and stock options. We develop a detailed plan that dictates when the client should and should not buy or sell their company stock.
For those executives deemed insiders, we often use planned sales strategies for their company stock using a 10b5-1 declaration – a legal document which provides an executive the ability to buy, sell or exercise stock in the event of some pre-determined trigger (e.g. target price achieved or a new vesting of shares). Not only does this allow the executive to take action during blackout periods, it also helps to greatly reduce the risk of insider trading allegations. It is our job to help the executive plan for the long-term while also avoiding risks – whether they are market related or trading related.
Our belief is that charging a fee for investment management provides investors with account flexibility and is consistent with our philosophy of providing objective advice. Our fee is based on the amount of assets held with our firm and reduces, in percentage terms, as the clients assets grow. A list of additional considerations, as well as the fee schedule, is available in the firm's form KGWP ADV 2A - March 29, 2018.