Our Investment Process basically flows from left to right in top set of boxes below. The majority of the time in developing a financial plan is initially spent in the Asset Allocation and Endowment Model steps. If we are doing more advanced planning, then we include analysis to minimize Taxes (income and Estate) and more Advantaged Estate planning.
Most of the time, we invest our clients assets into the same type of assets and allocations that we have developed over the years and utilize ourselves in our own financial plans.
When using more of the alternative investments and the Endowment Model, we do conduct additional "Due Diligence" of these investments. The Due Diligence is conducted at three different levels.
The first level it is done by at lease one national level auditing firm (usually 2 or 3). The second level it is done by the Broker Dealer (Kalos Capital and Kalos Management), and then the third level is done by the advisor personally. We usually attend multiple Due Diligence Meetings with the different investment firms each year. Prior to COVID, we conducted those meetings in person, being able to not only learn the details of the various offerings, but we also are able to meet with the upper level management staff and many of the company founders. Post Covid, we now conduct these Due Diligence meetings virtually.
Please spend time with the Asset Allocation and Diversification model section. You will see that not all asset classes are profitable, all of the time. With a well diversified portfolio, in the longer term, the ups should outweigh the downs.
That has been our experience
Investment Options - limited
Savings Interest Rate - 12 to 18%
Investment Accounts - Individual, Joint, Tenets in Common
Retirement Plan - Cash Value Life Ins and Savings
Investment Options - Stocks, Bonds, Mutual Funds, Unit Investment Trusts, ETF's, Interval Funds
Savings Interest Rate - 0 (zero) and has been for 13 years
Investment Accounts - Individual, Joint, Tenets in Common, Retirement (401K, 403B, 457, SEP, SIMPLE, Roth), HSA
Pension - rarely now
The Secure Act - Trust. Honesty. Integrity. We believe values matter, and we live by ours every day.
Years of experience have prepared us to guide you through your life transitions.
The Endowment Model is a way to add additional diversification
Important if you have significant assets outside Retirement accounts
The Fallacy that Fees are All That Matter. Total Return Matters
5 Smart Investing Principles
Not All Share Classes of an Investment are Equal
Fees are important, but Total Return is what is most important
Where Have All the Investments Gone?