General Information
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Investment Planning - General Information


We provide this service to individuals and companies. Many clients do not have retirement plans. We have a separate fee structure that depends on the complexity of your current assets, and on the number of people involved in the process – for example, we recommend you and your spouse be a part of all conversations, and you may wish to involve your heirs or have a separate training program for your heirs.

You currently own some assets, such as your home, stocks, bonds, ETFs, index funds, income producing real estate, collectibles, etc. Each of these is called an “asset class”. You are saving each year, to develop a larger asset base in the future. The single most important aspect of your assets is what asset classes you are planning on using. Of course the amount of your assets is a key for you, but oddly enough you need to plan now to diversify into asset classes for which your risk tolerance statistic is high, in order to actually achieve this diversification later. You have to dream it first, and do it second. We help you do projections, using our INVESTMENT PLANNING TOOL, of your assets at different periods of time, showing the amounts invested in each asset class and the income coming in from each asset class. The projections include your home. We help you plan for the transition into different asset classes. First, however, we look at your history and current attitude to develop your personal risk tolerance statistics for the major asset classes. For example, if you have a history of buying stocks and selling them frequently, with a record of losses overall, perhaps you should consider buying income producing real estate – the main driver for this decision would be twofold: a) you can’t buy and sell real estate quickly, and b) your own personal risk tolerance for stocks might be quite a bit lower than that of professional money managers with whom you are competing.

Do you get weary of buying stocks when they are “going up”, and selling your portfolio because it is “going down”? Have you considered buying a more conservative index fund instead? Are you making too many decisions? Is it too easy to make decisions, and change your portfolio? Do you realize that professional money managers trade a lot less than you do? Do you realize there are more stock funds than there are stocks? What is your personal risk tolerance statistic for owning stocks?
Do you own income producing real estate, such as rental apartments, condos, rental single family homes? Is real estate easy to sell when prices are going down (the answer is no)? Do you know how to either a) Hire out property management services, or b) collect the rents and get a group of contractors to make repairs and improvements? What is your personal risk tolerance statistic for owning income producing real estate?

Do you own precious metals, collectibles, art, etc? What is your personal risk tolerance statistic for owning precious metals, collectibles, etc?
What is the value of your home? Do you have plans for downsizing at some point? Will you sell when prices are going up? Have you factored in to your plan how much income you can get by investing the proceeds from selling your home(s) and buying a less expensive home? What is your personal risk tolerance statistic for owning your own home?

We sit with you in several meetings. We go over your history of investments in different asset classes, and use that history and your current attitudes to develop your personal risk tolerance statistics for each asset class. We then work out, with you, a reasonable plan for savings over each year for the next 5, 10, and 15 years. Yes, savings are variable, and lots of life will interfere with this plan. We then work with you to select asset classes, and proportions you want in each asset class at 5, 10, and 20 years.

Finally, we put these values into our INVESTMENT PLANNING TOOL, which we designed, to produce your asset portfolios at 5, 10, and 20 years into the future. These asset class portfolios also show the annual income you can expect to derive from each asset class and in total. The annual income is a main focus, with total assets being a secondary goal.

Then the real work begins. We work with you to play “what if” changes in the asset class allocation, and the annual savings inputs. At the end, you will have a picture of your personal aversion to risk for each asset class, an understanding of the problems inherent in making too many decisions, and a path to selecting an asset class allocation that works for you.

Finally, you need to look into asset classes that you may not be currently using, but for which you may be well suited according to your personal risk tolerances. We can help you find professionals and university courses to help you start down those paths.
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