Our clients all understand the importance of investing, yet choose to work with us either because they lack the time, confidence or skill to manage their money. Money and finances can be a very personal topic, and our clients also value the unemotional and objective advice from a professional advisor.
We begin with a thorough evaluation of your goals, aspirations, risk capacity, timeline and emotional considerations involved with personal finance. Based on this discussion, we form an Investment Policy Statement that maps out our investment strategy tailored for you. This custom portfolio is built on the premise of asset allocation, and captures our learning about the factors mentioned above.
Building a custom portfolio is important to us. Managing money is part science and part art, and a one size fits all approach does not take individual needs into the equation. Statistics and probability help us determine potential portfolio returns using mathematical tools like Monte Carlo simulation, and Time Value of Money (TVM) calculations.
The “art” part of managing money has a lot to do with behavioral finance. This is the influence of psychology on investor behavior. The mathematics give us a mechanical picture of an appropriate portfolio while the client’s attitude can help us determine the behavioral factors to be considered.
Because we take these factors into consideration and are investors for the long game, we not so jokingly say, ‘when you hire us, you’re hiring the tortoise not the hare’.