As a RIA, Guy’s firm manages markets, not stocks. they instead, invest in a widely diversified portfolio of international and domestic funds, including emerging markets and Fixed income. There are TWO types of investors - those with a long term view and speculators. Investing is a science. We prefer to use research and scientific principles to help our clients achieve their financial goals. Clients want someone who will listen carefully to them and help them define their financial goals and objectives. Then help them achieve their vision. We do this by looking at cash flows, liabilities and planning options. Our approach includes economic modeling of various choices to determine the optimum outcome.
We utilize what I call “The Three Circles of Wealth.” Everyone has a plan, either by design or default. Every plan has a price tag. Our job is to define the pricetag of the plan and help clients optimize their outcomes and be more efficient. Every client manages their Three Circles differently. Circle 1 - Wealth Accumulation. This includes all of the investments and strategies employed to build wealth. Circle 2 - Wealth Succession - who is going to get what. How will it be titled and who will manage it? Circle 3 - Wealth Preservation - making sure what you put together stays together.
The biggest problem with the Three Circles is most people have created a patchwork of strategies and legal documentation that has become archaic and outdated - a plan by default. By reviewing the Three Circles, we are able to identify inefficiencies and ways to improve the plan. We customize our solutions to the unique issues and objectives of our clients.
One of the biggest opportunities form many clients is to assess their investment portfolio. There are FOUR factors that impact the return for most investors - 1. Understanding Volatility; 2, Knowing how to properly construct and portfolio; 3, Minimizing fees and expenses and finally managing tax impact on non-qualified money. (Qualified money is a whole different art form).
Our RIA (Wealth TEAMS Solutions) has developed a comprehensive analytical tool called our Expected Returns Analysis. We assess where your portfolio is in relation to the Efficient Frontier and how much risk you are buying to achieve your expected return. In most cases, we find investors a buying way too much risk for the expected return. Couple that with expenses and fees that are 50% or more higher than best practices dictate, (due to high turnover and management fees).