Investment Process
1. Identify Goals and Objectives
Your investment strategy should flow directly from your short- and long-term goals and objectives. For example, a client entering retirement will have different goals than someone who is accumulating assets during their earning years. We will work closely with you to establish a strategy to help pursue your goals.
2. Assess Risk Tolerance
Each client approaches risk differently. The investment strategies we recommend will be carefully aligned with your tolerance for risk. If there is incongruity between your risk tolerance and your goals, We will highlight the disparity and work with you to reconcile the two.
3. Develop Investment Strategy
Your investment strategies will be specially designed to fit your goals and objectives, risk tolerance, income needs, current market valuations and margin of safety—all within a framework that seeks optimal diversification across traditional and alternative asset classes.
4. Select Account Structure
FFS clients may open multiple accounts that may include retirement and non-retirement, trust, entity-owned, etc. Having multiple accounts creates opportunities for household-level tax efficiency, as well as the ability to use specific accounts to pursue a particular facet of the client’s overall strategy, such as managing downside risk or tax-efficient income.
5. Choose Investment Managers
At this stage, we will make recommendations from among a diverse pool of investment managers with careful attention to risk, cost, and tax-efficiency. Through LPL Financial, we have access to thousands of investment options—from traditional mutual funds to alternative investments—that can be combined to help pursue your specific goals and objectives.
6. Portfolio Implementation
Once we have determined an appropriate investment strategy, we will provide you with an overview diagram showing how your accounts will be transferred to LPL Financial and invested. We will then collect the information needed to produce account documents for your signature. Throughout the process, we will keep you informed about the status of your accounts.
7. Monitor, Rebalance, Adjust
Your portfolio will be monitored and rebalanced as needed, based on your goals and objectives. As your goals or circumstances change, modifications will be made to keep your plan current.