A sound process requires customized steps.
A comprehensive approach, focused on what’s important to you.
1
Engage in discussion.
Spend a lot of time on the front end getting to know how you think, what you care about, and what you want to do.
2
Take your temperature.
Ask about any sources of heartburn for you.
3
Review current total balance sheet.
- Identify assets, liabilities, insurance and entities—see what you currently own.
- Engage in thoughtful diagnosis of existing asset allocation and asset location.
- Analyze current risk exposure.
- Determine what parts of current strategy are working and what parts are sub-optimal.
4
Develop plan to optimize overall strategy.
- Identify and add component parts that are not highly-correlated to enhance diversification.
- Adjust asset allocation, as appropriate, and add alternatives to seek to minimize risk and help preserve growth.
- Help reduce tax costs upon implementation.
5
Utilize experienced investment managers.
Engage investment managers who are specialists at their respective disciplines.
6
Maintain integrity and discipline in managing assets.
Actively rebalance to buy low and sell high. Monitor plan on ongoing basis. Revisit as circumstances change, and consult with other advisors, as needed.
No strategy ensures a profit or protects against a loss. There is no "right" time to enter or exit a market. There is no guarantee that the investment objective mentioned here will be met. Please note that rebalancing investments may cause investors to incur transaction costs and, when rebalancing a non-retirement account, taxable events will be created that may increase your tax liability. Rebalancing a portfolio cannot assure a profit or protect against a loss in any given market environment.