Investment Management

Developing Investment Portfolios For Our Clients Starts with a Plan.

Services

We do not believe that one size fits all, that is why our portfolios are custom designed to pair well with our clients retirement planning. Wether a client is accumulating asset for retirement, or is distributing income from their assets, we carefully tailor a portfolio based on their needs as defined in the retirement planning. The reason the planning is so important is that it serves as a benchmark to measure the success of the investment portfolio, and make changes when warranted. Our goal is to build portfolios that accomplish your goals with the appropriate amount of risk.

Value at Risk (VaR)

Do you no what your portfolio's value at risk (VaR) is currently? When it comes to investing the discussion typically is about return, but understanding the risk in the portfolio may be more important. Why?, because loss overpowers gain. In order to "make up" for a loss, a higher return is necessary to make up for the lost funds. Simply put, after a loss, you have less assets to work with, so the remaining assets have to work harder to compensate. Although this can be a minor setback if you are in your early savings years, the closer the losses are to your target retirement age—or if losses occur during retirement—the more impactful the losses can be to your standard of living.

We use sophisticated software to measure VaR in portfolios to access the level of risk and potential level of return to determine if the portfolio is optimized to accomplish the planning goals. We can then stress test the portfolios under different conditions to see how they may react and possible range of outcomes.

We do not believe that one size fits all, that is why our portfolios are custom designed to pair well with our clients retirement planning. Weather a client is accumulating asset for retirement, or is distributing income form their assets, we carefully tailor a portfolio based on their needs as defined in the retirement planning. The reason the planning is so important is that it serves as a benchmark to measure the success of the investment portfolio, and make changes when warranted. Our goal is to build portfolios that accomplish your goals with the least amount of risk.

Value at Risk (VAR)

We use sophisticated software to measure risk in portfolios to access the level of risk and potential level of return to determine if the portfolio is optimized to accomplish the planning goals. We can then stress test the portfolios under different conditions to see how they may react and possible range of outcomes.

Returns are important but you must also understand losses. Stock market returns don't compound.

When withdrawing money in retirement, it's not just about average rate of return. The sequence of returns matters.

One of the largest concerns of clients in retirement is running out of money. It is possible to have two separate clients earn the same rate of return over time using the same withdraw rate and one runs out of money and one does not. The concept of sequence of return is the reason.

In this example no withdrawals are made, so the

average return of 7% yields the same ending value.

In this example the same annual withdrawal is taken

and the same sequence of returns are used as on the

left, however ending values are very different!

Investing involves risk. Depending on the type of investments, there may be varying types of risk. Investors should be prepared to bear loss. No strategy or software can guarantee positive results.