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 recommend suitable strategies and actively monitor their progress in accordance with the client’s financial plan. As markets fluctuate and new milestones approach, adjustments will be made to keep the portfolio aligned with their financial objectives.
The individual investor is at the mercy of the markets; how one responds to political, economic, and psychological inputs can have an impact on success. It is our role to help our clients take control of the aspects of the planning process which 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 supports the belief that 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 we make.
Investment management goes far beyond asset allocation and the traditional buy and hold philosophy. We are tactical investors who seek value in all asset classes. If an investment is determined to offer value, we purchase it for all of our investment management clients for whom the investment is deemed appropriate. Clients are assured our best ideas are implemented in all accounts, regardless of the size.
This proactive approach to investment management also applies 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 client’s equity ownership – including restricted stock and stock options. We develop a plan which determines when the client should exercise options or sell company stock. For those executives deemed insiders, we recommend planned sales strategies in the form of a 10b5-1 declaration – a legal document which provides an executive with the ability to buy, sell or exercise stock in the event of some predetermined trigger (e.g. a 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.
Finally, our belief is that charging a fee for investment management, as opposed to commissions, allows for more flexibility and is consistent with our fiduciary responsibility to provide unbiased and objective advice.