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We manage our clients’ investment portfolios on a continuous basis and provide ongoing financial planning at no additional cost. We prepare a Two-Year Road Map to keep our clients on track to accomplish their goals. The Road Map is comprised of eight quarterly meetings. At each meeting, we discuss topics such as insurance, investments, income tax, retirement analysis, and estate planning. Each client’s situation is unique, so we customize the experience to the individual.
The Wealth Management Process
Wealth Management is a structured process which includes: (1) Discovery Meeting, (2) Ongoing Comprehensive Financial Planning and Client Engagement Road Map, (3) Goal-Based Reporting (investment benchmark, risk and returns, rebalancing), (4) Periodic meetings which are usually quarterly. Follow up letters are sent to clients after each review meeting summarizing what was discussed, recommendations, and next actions.
Step 1. Establishing and defining the client-planner relationship.
Step 2. Gathering client data. We construct a personal profile identifying your goals, time horizon, liquidity needs, risk tolerance, resources, cash flow, and income requirements. The information gathered during the Discovery Meeting. This information also serves as the foundation for the Client Engagement Road Map used to structure the ongoing comprehensive financial planning. The client prioritizes the sequence of issues that will be addressed over the next two years. These topics may include:
- Retirement Planning; 401(k), IRA, ROTH IRA, Pension Plans, Retirement Funding, and Income Disbursement.
- Wealth Transfer and Estate Planning; Wills, Trusts, Power of Attorney, Health Care Proxy, Living Will.
- Risk Management and Protection of Income; insurance for life, disability, homeowners, automobile, long term care, personal liability.
- Business Succession, Buy/Sell Agreements.
- Tax Analysis of Investments and Retirement Vehicles.
- Investment Planning (including portfolio design); i.e., asset allocation and portfolio management.
- College Funding, Debt Management, Cash Flow Analysis, and Budgeting.
Step 3. Analyze and evaluate the client's current financial status.
Step 4.Develop and present investment management and financial planning recommendations. Develop the Client Engagement Road Map outlining the structure of the comprehensive and ongoing financial planning. Note: WFS is an independent firm and does not sell investments or insurance. WFS is a Fee-Only firm and does not receive commissions, rebates, awards, finder’s fees, or bonuses for recommending insurance policies or investment products. No one is influencing our recommendations.
Step 5. Determine the optimal asset allocation and appropriate diversification of the investment portfolio. A diversified investment portfolio is designed to maximize returns while simultaneously managing risk. The client's risk tolerance and the risk within each of the assets are considered.
Step 6. Implement the investment portfolio with either discretionary or non-discretionary trading authority. You will grant our firm either discretionary or non-discretionary trading authority to manage your account. Discretionary authorization will allow our firm to determine the specific securities, and the number of securities, to be purchased or sold for your account without your approval prior to each transaction. The trading authority you grant the firm is documented in the Investment Advisory Agreement, the applications you sign with TD Ameritrade (you initial the limited power of attorney authorizations) and the Investment Guidelines documenting the portfolio model chosen and lists any restricted positions to be held in your accounts. You may limit our discretionary authority, for example, limiting the types (fossil fuels, tobacco) of securities that can be purchased for your account. These guidelines and restrictions can be changed at any time with a new signed Investment Guidelines form. If you enter into a non-discretionary arrangement, we must obtain your approval prior to executing any transactions for your account.
Step 7. Monitor investment performance and periodically rebalance the portfolio. The investment portfolio is monitored on an ongoing basis. Portfolios are rebalanced if the relative value of the investment changes enough to become inconsistent with the agreed upon asset allocation because of changes in the market or your financial circumstances. Account supervision is guided by the stated objectives of the client, i.e. growth, income, or growth and income. Clients are asked to notify WFS if there is ever any change in their financial situation or investment objectives.
To summarize, Investment Management includes
- Developing investment strategies
- Selecting investments
- Executing trades (on a discretionary or non-discretionary trading authority)
- Periodic performance reporting
- Reallocating portfolio due to changes in your portfolio model, economy, performance of fund managers and other factors
- Tax loss harvesting
Step 8. Monitor the progress of the comprehensive financial planning. The Client Engagement Road Map segments the issues and attaches a time table to the strategic financial plan. Financial Planning is a dynamic process and is monitored with review meetings. Most clients have meetings quarterly. Different financial strategic plans and/or products may be more appropriate and effective as circumstances change. Planning is affected by changes in the economy, political environment, stock market, tax laws, investment performance, health status, income, or other life event such as divorce, job loss, or death of a loved one. Wealth Management clients do not receive a single written financial planning document, as this service includes comprehensive and ongoing financial planning. Clients are provided a "Client Engagement Road Map" that breaks down the planning process into assignments or activities that are discussed and acted upon during the client's meetings which are usually quarterly. All meetings are followed up with an e-mail or letter summarizing what was discussed, recommendations, and next actions. Clients receive a call before the meeting to review the agenda for the meeting and may add or delete a topic depending on their preferences or an event that requires a discussion/solution.