Investment Advisory Services

Wealth Management Advisors is dedicated to the proven principles of strategic asset allocation for portfolios with long-term investment horizons.  We work with each client to assess their risk profile and develop a portfolio that is specifically designed to meet their own personal and/or family goals comfortably.  Investment advisory services are part of a more comprehensive financial planning approach that we take with each client.

We are not “hot stock pickers.” We do not believe in market timing. Our client portfolios are designed and implemented with a strategic long-term (greater than 5 years) perspective. For shorter-term portfolios we emphasize a solid yielding fixed income focus which may include very limited equity exposure.  We believe this is most appropriate for assets needed for a specific goal within the next three years. All clients are urged to have an accessible emergency fund of 6 to 12 months of expenses. We follow a five-step process:

1. Analyze Current Position

Every investor is an individual with different needs and different objectives. We will analyze your investment objectives, time horizon, liquidity needs, asset class preferences, expected returns on investments, and tolerance for volatility. We also gather information on any legal and personal constraints and identify existing money manager, brokerage, and custodial relationships. We compare the performance of your current investments to your overall goals.

2. Portfolio Design

Once we understand your investment objectives and wealth management goals, we use our asset allocation process to develop an optimal asset allocation strategy tailored to your personal investment philosophy and based upon your risk tolerance and desired returns. Asset allocation is the central theme of our five-step process and the primary factor in determining investment results. Portfolio management research (the 1991 Study by Brinson, Singer and Beebower) has shown that asset allocation—not individual stock selection or market timing—accounts for more than 90% of the variation in total portfolio return. Therefore, how you allocate your investment dollars among the three major asset classes (stocks, bonds, and cash) far outweighs the potential effects of which security to buy and when. Through effective asset allocation you have the potential to earn more consistent results than with a narrowly focused, one-dimensional investment program, thereby smoothing the long-term ride in terms of market cycle volatility.

3. Formal Investment Policy

Once a fully diversified portfolio has been designed we will review with you the proposed asset allocation model and investment strategies, and then document them in a formal investment policy statement (IPS). The investment policy is a critical step in the investment management process. It incorporates your personal investment plan into a formal document that serves as a guideline for implementing your investment strategies and as a benchmark for measuring and reviewing the performance of your investments over time.

4. Plan Implementation

Wealth Management Advisors will work with you to identify money managers and mutual funds that best meet the criteria documented in your investment policy statement. Money managers are selected to manage individual pieces of the portfolio. Using multiple managers is a key aspect of our approach. The more investment styles represented, the greater the diversification in your portfolio; the more diversification, the less risk for your money.

5. Monitor and Review

Upon implementation, we provide ongoing monitoring of your investment policy. You will receive monthly transaction and holding reports from your custodian documenting activity in your accounts. You will be provided with detailed reports that compare the performance of your portfolio to market indices, your stated investment objectives, and money manager and mutual fund peer groups. Because your investment environment is never static, our services are readily available if market conditions dictate or your personal financial situation changes. In addition, we will meet with you on a regular basis to review overall performance and make any necessary strategic adjustments to your portfolio to ensure that it conforms to your investment policy.