WEALTH MANAGEMENT

As you can see from the enclosed link of From ADV Part II, our firm enters into a portfolio management agreement that includes an investment policy statement that specifies the level of risk in relation to the client’s targeted rate of return. It is important for you to review this form as it is a required disclosure to be made available to all clients outlining the policies and operations of our firm as your investment advisor. Should you have any questions or comments about the Form ADV, we will be happy to discuss them with you. 

In addition to receiving guidance from the Client’s investment objectives and risk tolerance, the firm’s investment philosophy is conservative in nature and emphasizes preservation of capital, diversification, and a sensible level of risk. We use a top-down approach in our investment process, utilizing macroeconomic analysis to construct the mix of our targeted asset allocation (equity, fixed income, and cash). We then select individual securities, mutual funds, or exchange-traded funds from those asset classes based on each client’s investment policy statement, as well as the potential long term value inherent in the particular security. The firm identifies a set of securities, across our three asset classes, from which we select for investment. Our firm emphasizes high quality growth and value-oriented stocks and mutual funds. 

Within each asset class, we select securities with the following in mind. Certain equity securities yield relatively high dividends such that they exhibit some characteristics of a fixed income security. Therefore, these certain equity securities may be classified to fixed income despite their traditional definition as an equity security. For purposes of better aligning your portfolio statements with the firm’s investment process and objectives, your portfolio statements will generally classify any security having a current yield above that of the 10- year Treasury yield as a fixed income security. Conversely, your portfolio statements will classify any security having a current yield equal to or below that of the 10- year Treasury yield as an equity security. 

Also, our firm will require an Investment Policy Statement for each individual account to more accurately execute the unique objectives of each account. Initially, unless precluded by the client’s investment objectives and risk tolerance, the Investment Policy Statement of all taxable accounts shall maintain a formulation of our targeted asset allocation mix of approximately 40%-50% fixed, 40%-50% equity, and 0%-20% cash. The Investment Policy Statement of all retirement accounts shall generally maintain a formulation of our targeted asset allocation mix that is weighted more heavily on the equity side. We can always customize each account’s Investment Policy Statement to correspond with its unique objectives where appropriate.

In implementing your unique financial goals and objectives, we use a variety of wealth management services. Whether you require capital preservation or appreciation, our comprehensive approach includes the following services: