The Financial Management Process
When working with both existing and new clients, Jeff adheres to an established investment process involving six distinct steps. Please click on the links below for a description of each step.
The Financial Management Process
The Evaluation Session
The purpose of this session is to gauge our "goodness of fit." Jeff is interested in learning about your financial philosophy, past experiences, and future expectations. In return, he will provide insights into the role he plays in his clients' financial lives and what he perceives as his unique ability.
If there is agreement that there would be mutual benefit from working together, you will proceed to The Financial Health Audit.
The Financial Management Process
The Financial Health Audit
The purpose of this meeting is to discuss your current situation, feelings, and goals. Jeff wants to identify what financial dangers exist in your lives that need to be eliminated; the opportunities that exist for your future, and the strengths you possess that can be used to help achieve your goals.
Jeff will discuss the concept of risk and how it impacts decisions during the planning process, identify constraints for consideration when creating your customized financial solution, and help you define time horizons to accomplish your goals.
Once complete, the next phase in the process is The Financial Enrichment Meeting.
The Financial Management Process
The Financial Enrichment Meeting
The purpose of this meeting is to present a written proposal comparing your current financial situation and investment portfolio against your goals that were identified during The Financial Health Audit. The objective is to identify which aspects of your portfolio are complementing your goals and which are hindering.
Jeff will outline new strategies to implement that he believes can help you achieve your goals. He will also explain his unique process for the sorting and selection of securities to consider for your investment portfolio. This establishes the framework for The Portfolio Creation Process.
The Financial Management Process
The Portfolio Creation Process
This is the most creative stage of the investment process. Jeff begins by putting himself in your shoes. He envisions what you desire to accomplish and assembles several strategies for consideration. He weighs the pros and cons of each, and by applying his knowledge of your current situation, feelings, and goals, recommends the strategy he believes is most suitable and entails the least amount of apparent risk (as measured by the potential volatility of your investments).
When constructing your portfolio, Jeff begins by identifying what, if any, securities will be maintained from your current investment portfolio. The next step is to "fill in the gaps" with other complementing securities. Implementation of the total portfolio could take as quickly as a few days or as long as a few months, depending on potential tax repercussions and current market conditions. Jeff does not believe in chasing performance, but prefers to be flexible and patient and, where necessary, wait for opportunities to present themselves.
Once the portfolio is created, the next step is The Portfolio Monitoring Process.
The Financial Management Process
The Portfolio Monitoring Process
Implementing recommendations is only the first step towards achieving your financial goals. Being a successful investor requires continuous monitoring of each security. For each security, Jeff constantly considers, "If this was a brand new investment would I find this security attractive?" In addition, Jeff regularly listens to conference calls from portfolio managers, reads reports, and measures a security's performance against its peer group and benchmark index. Jeff would consider recommending the liquidation of a security for a variety of reasons, including:
- A management change or the departure of the lead portfolio manager;
- Regulatory, legal, or accounting issues;
- Extended underperformance compared to their peer group or benchmark index; or
- Style drift.
Accountability for results occurs during The Portfolio Performance Review.
The Financial Management Process
The Portfolio Performance Review
These meetings are designed to provide an opportunity to review any changes in your life or financial goals, assess your investment performance, and discuss any issues that we believe require attention. Jeff encourages questions and prefers they be submitted prior to the meeting to allow him to spend time on issues that are most important to his clients.
