VALUES & RISK ASSESSMENT

Institutional investors, such as insurance companies and pension funds, always know the “why” behind investment decisions. There’s a larger financial purpose, and investments are there to serve it.

Individual investors also need to know their path. That means quantifying the financial decisions that support your vision for the future. Doing so can seem like an overwhelming task, but it’s essential. We help guide the process and make it easier.

The result is NOT static. Our lives change—in ways we like, and sometimes don’t like or can’t anticipate. An effective plan must reflect where you are today and accommodate change.

TV commercials from large financial service companies tell you that your money exists to let you walk on the beach during your retirement years. Yes, spending time how you’ve always wanted is an important goal for most people. But in our experience, clients’ desires go far deeper.

In most cases, family is the operative word. Often people value their children’s financial well-being higher than their own. They care about their kids’ education, about their own healthcare so as to avoid being a burden, and about leaving something behind.

All these and more must be quantified to the best extent possible—in dollars—without falling into the trap of false specificity.

Mike Tyson famously said, “Everyone has a plan until they get punched in the face.” Investors DO get punched in the face! Down markets can be painful, even when we remind ourselves to think longer-term as we remember there’s no such thing as higher returns with less risk.

In our approach, we focus on how much loss—in dollars and percentages—a client can endure for up to two years (since beyond two years, markets tend to recover, historically speaking). This is important, because over longer time periods, stock market corrections and economic recessions are a matter of when, not if, they will occur. Having a plan to navigate those periods is critical to long-term success.