Many people mistakenly believe that investment management is simply selecting the investment or combination of investments that will generate the highest yield or highest long-term return. In reality, sophisticated investment management is actually much more complicated than that as it integrates several interrelated components of which specific investment selection is only one facet.
Portfolio Construction
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Coordinate and integrate your investment program with all aspects of your life
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Determine an overall asset allocation mix that is consistent with objectives and risk tolerance
Taxes
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Application of year-round tax-sensitive investment strategies
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Asset location
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Integration of your investments with your current and expected unique tax situation
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Use of tax-efficient, institutional investment vehicles
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Low turnover
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Cash flow planning – optimal accounts for withdrawals given your tax situation
Fees
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Use of low-cost investment vehicles
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Minimize trading costs
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No commissions
Portfolio Maintenance
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Integrity of portfolio maintained through cost-efficient, calculated rebalancing decisions
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Performance evaluation
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Modifications to incorporate new asset classes and planning opportunities as they are identified
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Access to tools and technologies for effective, efficient analysis
Behavioral Finance
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Provide discipline to investment experience
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Discourage costly reactionary behavior
The difference in returns between two portfolios that hold similar investments, but one incorporates these components and one that does not can be significant.
The bottom-line impact of integrating these factors to a certain extent can be measured – tax and fee savings can be calculated. However, some elements cannot be quantified. How do you a place a value on peace of mind, freedom to do what you want in retirement with the confidence that a team of is looking after your portfolio with your best interests at heart, confidence that if something should happen to you, your loved ones will be counseled and advised by professionals who you trust?
A good financial advisor will work with you to (1) articulate a clearly-defined investment strategy that has a high likelihood of enabling you to meet your goals, (2) tax and cost-efficiently implement that strategy, (2) maintains the integrity of your overall, comprehensive financial plan, incorporating adjustments as necessary, and (3) stay focused by minimizing the “noise” created by the media and other outside influences.
At Core Wealth Management, it is our expertise as Certified Financial Planners®, CPAs, Chartered Financial Analysts and our years of experience managing investment portfolios and advising clients that sets us apart. We are confident that the value our clients receive far exceeds the fees that we charge for our services, which are completely transparent and which we only receive from you.
When it comes to your health, you would always seek the professional advice of a doctor or specialist. If you were going to sell your business, you would consult with attorneys and accountants to be sure the transaction was structured appropriately. If you had a legal dispute, you would not hesitate to hire an attorney to represent you. You rely on these professionals and are willing to pay their fees because of the peace of mind they provide – you know that things are not as simple or as cut and dry as they may seem – and you want to be sure you have access to the best advice possible. Investment management should be no different.