Some Common Questions About Investment Management
How does the process work?
First, we talk about what the purpose of the money you are investing: retirement? a child? a dream home? Once we’ve established the ultimate goal, we’ll then figure out an investment strategy that makes sense for that purpose. We’ll have a conversation about your risk tolerance (and your capacity to take risk). This will establish a comfort level. And then, we will develop an “investment policy statement” for you. This document will provide the guidelines on how I will invest your money based on your situation. Ultimately, your goals and comfort level drive the process.
How much risk do you take with my money?
Before the first dollar is invested, we sit down and have a conversation about what you are comfortable with. We assess you’re ability (or capacity) to take risk and your willingness to take risk. Once we decide on what makes the most sense for you, we will establish guidelines for your investments and stick to those guidelines as we manage them
Will you beat the market?
No! I’m afraid you’ve found the wrong place. It is my firm belief that you don’t need to pick the right stocks to achieve your dream goals. Instead, an investment management discipline focused on protecting your downside and controlling the things in our control — expenses and taxes — are the keys to long term success. The market will take care of the rest.
What do you invest in?
As a general philosophy, my investment management style is concentrated on using a mix stocks and bonds in your portfolio. This may take the form of a basket of individual stocks or bonds or through exchange traded funds (ETFs). I generally shy away from using actively managed products (i.e mutual funds) given the likelihood that you will underperform the market and pay a lot of cost.
Will you help me manage my investments outside of your firm?
Yes! As your investment advisor, I will look over all of your investments held at other firms if you would like –whether that is an old mutual fund, a small business or alternative investments.
How do you charge for investment management services?
For clients that are strictly investment management clients, the fee for managing the assets is 0.65% per year for assets less than $1m. And 0.60%/year for assets >$1m.
What’s the value of having a financial advisor to manage my money?
The value a financial advisor provides in managing your money is multi-faceted. A financial advisor will tailor an investment approach that is appropriate for your situation. I will add value my ensuring that you are controlling for risk (not being too risky with your money), that you are optimizing where you invest your money (tax advantage or taxable accounts) and finally controlling the controllables. That means I help you to save on expenses and taxes. Oh and most important: helping you to manage your worst impulses when markets go crazy and your markets go up or down a lot.