Process
For each prospective new client we employ a detailed interview process which starts by gathering information on all client assets to be managed. While we are not financial planners, we request an overview of assets held outside our firm to better understand each client’s total picture. We plug this information into a simple cash flow projection that includes expected ongoing expenses. If the clients have a unique or complex circumstance, we will work with a financial planner to quantify them.
After determining the client’s resource base, we review the client’s individual goals by breaking them into four distinct prioritized categories as outlined below.
The result of this multi step process informs the eventual investment policy and asset allocation by clarifying the return ability of the financial resource base and then overlaying these assumptions with a prioritized view of the client’s life goals and tolerance for risk. Understanding and refining this intersection of expected return and personal objectives with the client’s ability to tolerate risk is critical in defining an investment policy.
The investment policy and asset allocation are reviewed with clients on a periodic basis but no less than annually and should be adjusted based on changes in age, life circumstances and goals.