Investment Management
Financial Planning means different things to different people and to some it’s simply the answer to one general question “Will I have enough money to retire when I want?”
The answer can be so simplistic that it could be calculated using a financial calculator and a paper napkin but in order to do a proper job a number of factors must be taken into consideration.
The Investment Policy Statement (IPS) is a document that you use to tell your financial advisor what to do and how to handle your investments. This takes into consideration your financial goals, resources, needs, risk tolerance and personal preferences and also outlines roles, responsibilities and expectations.
This document compliments the Personal Investment Plan and reveals how our present path will result in achieving or not achieving our stated goals. We use software that does not require a static rate of return assumption but mimics the actual returns of various asset allocations and indexes over the past 100 years and shows the best, worst, and median case scenario so we can decide for ourselves if we are satisfied with our approach.
Finally a Portfolio Analysis ties the whole package together where the risk tolerance level chosen is used to build a portfolio and the portfolio is then back tested for historical returns, asset allocation, risk/return analysis as well as performance correlations. We use this analysis to come to our own conclusions as to whether or not the portfolio is capable of producing the desired returns expressed in the IPS and used in our Investment Plan.
