Before any investments are made the first step is to determine your ‘Financial Landscape’. This takes place during an in-depth meeting to assess your current lifestyle and spending/savings habits, income sources, and current investments. Then leaping forward to your goal dates for financial independence or retirement, we can complete a ‘Gap Analysis’ to determine what plan and lifestyle adjustments are needed to reach your end goal.
- We reverse engineer the process by starting with the end in mind.
- Once we have a good understanding of where you are at today, where you want to be in the future and have completed a Gap analysis to determine what your future potential shortfall is, then and only then, can we begin to analyze the various options or vehicles that you could access to accomplish your goal.
- We then choose the investment vehicle based on the following:
- What type of investment is the client comfortable with
- What result does the client need from their investment
- How much money does the client have to invest
- Investments may then range from the following:
- Direct real estate investment
- A managed portfolio
- Private equity opportunities
Or ideally, a hybrid of all three
- Typically, the best answer is one that encompasses all three vehicles in a holistic approach.
- If the client wants to buy real estate, we can help determine how much real estate they would need
- If the client has traditional investments in a portfolio of stocks, bonds or mutual funds, we will analyze their current performance, determine their exposure to risk or volatility and make recommendations accordingly,
- We will then look at an appropriate allocation of funds to some private equity opportunities as a way to create a non-correlating portfolio of investments and further reduce volatility
- This three-pronged holistic approach helps to maximize a client’s long-term returns while minimizing their overall volatility always in keeping with the end goal that the client has stated.
- The investment decisions is based on what’s best for the client NOT what’s best for me.
- Ultimately, my goal is to ensure that that client’s actions are consistent with their stated goal.