Investment Decision Management Services

      Three components:

  • Personal Financial Modeling
  • Investment Policy Statement Development and Implementation
  • Quarterly Monitoring and Maintenance

 


 

Personal Financial Modeling (PFM) Services

An Excel template that can run on your PC, the PFM provides an interactive Big Picture with decision-specific variables for the client to "play" with, allowing the client to update current account values and  toggle between customized decision scenarios. Annual updates provide continued testing of investment assumptions and scenario changes.  Educates and sensitizes clients to the assumptions and variables that are used in their financial planning.
Provides answers to questions like:
  • How long/much do I have to work/save?
  • How much is enough?
  • How much can I give away?
  • How much risk should my investment portfolio carry?

The PFM rovides a target return for the Investment Policy Statement, and helps set the parameters for the design of your investment portfolio.

The PFM is a powerful estate-planning platform, and is very helpful in decision-making for complex estate planning situations.


 

Investment Policy Statement (IPS)

The IPS is key to the managing of investment decisions.  It establishes investment discipline and prudent process, and serves to clearly communicate how the client's investment decisions are to be managed.

We attempt to delegate investments (stock selection and timing decision) to money managers who have historically out-performed their peer groups.  However, the selected managers' historical performance is not indicative of future results.   

 

The IPS 

The IPS guides the process of managing the larger investment decisions, such as the mix of asset classes, targeted levelofreturn and risk, and the selection/replacement criteria and process by which the Money managers are monitored.


  • Identifies all funds to be subject to its structure and anticipates near-term investment cash flows.
  • Identifies all parties to the IPS and defines their roles.
  • Articulates the client's investment goals, objectives, and targeted return and level of risk to be assumed.
  • Establishes eight due diligence criteria by which money managers are selected, monitored, and replaced.
  • Outlines the process to be followed in the monitoring of the investment portfolio, replacing money managers as needed.
  • Minimizes Monday morning quarterbacking.

 

Quarterly Monitoring & Maintenance (QM&M) Services

Maintains the Process as designed in the Investment Policy Statement

Quarterly Reports

  • What has been driving the markets.
  • How the client's portfolio performed relative to the appropriate benchmark.
  • Investment managers review & measurements against their peer groups.
  • Watch list review.
  • Asset class allocation review/rebalancing.

Engagement Options

My Engagement Letter outlines the larger, Investment Decision Management (IDM) Engagement, and then allows the prospective client to chose one of two options:  the Investment Advisory (IA) Engagement (IDM & QM&M Services), or the Personal Financial Model (PFM) - Only Engagement.  A sample Engagement Letter can be seen by clicking here.

 

Client Control, Annual Updates, and Fees

My role is as a advisor/consultant rather than broker, and as such, I never have trading authority over your portfolio.  At implementation and when manager changes or rebalancing needs to occur, I provide specific instructions to both the client and the broker, which the client then authorizes.  The client is in always in direct control of their investment portfolio.

For clients who engagement me after the first year, I annually revisit both the PFM and the IDM with the client.  This keeps us on track over time.

My fee schedule can be seen here.