The first step in our process is to sit down with you and perform a complete review of your financial situation. This will include not only your assets and liabilities, and your net income, but also your current will and estate plan. This is an opportune time to look at what holes might exist, and begin the process of filling them in.
Next, we look at your goals and objectives and constraints. Most of us have the same goals and objectives (make as much money as fast as possible) but what really differentiates us as investors is our constraints (mainly our values and fears).
Once we have completed the first meeting and identified what you have and what you want, we develop a plan specifically for you. The two key components to this plan are:
Using your personal profile, we determine your asset mix (blend of fixed income investments and equities). From here we choose the individual holdings. This is achieved by applying our ICE strategy (Fixed Income, Core Holdings, Explore). What this means is that within your personal asset allocation structure, and depending on your risk tolerance, we select the individual holdings from a basket of:
Once your portfolio has been structured, we then apply a specific investment strategy, namely; buy and hold; conservative trading; or aggressive trading. The strategy chosen depends on your personal profile.
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We always begin with our prime objective - capital retention.
It's hard enough to earn the money, and doubly difficult to save the money - we know this. The last thing we want to do is lose that money!
Therefore, despite the asset allocation structure, if the markets are not appealing, it might take some time to fully invest the portfolio.
What To Buy And When To Buy It
We use a screening process to determine which stocks to buy and when the most appropriate time is to buy them. It is a combination of fundamental analysis, quantitative analysis, and technical analysis.
The timing of purchases (and dispositions) requires a great deal of discipline and patience. We assess the type of market we are currently experiencing. A bull market, a sideways market and a bear market all have their own investment strategies. Determining the right market 'profile' and investing accordingly is paramount for good performance.
Aside from the daily administration, and the ongoing communication we provide while servicing your account(s), we also schedule a formal review once a year. This meeting is critical as it ensures that we rebalance your portfolio accordingly, and also allows us to adjust your profile if anything significant has occurred in that time.
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