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We believe that successful investing is a process, not a product, and that you deserve more than a one size fits all approach to investment management. At WJM Financial, we use the following process to tailor an investment strategy to your personal goals and objectives:
Step 1: Get to Know You
In order to tailor a plan to your needs, we need to understand your goals, objectives and current financial situation. This is typically done through a combination of personal meetings and data gathering. The focus of these meetings is always on you, your needs, and your objectives. We believe that this is the most important step in the investment process.
Step 2: Analyze Your Current Situation
We analyze the information that you provide us in relation to your objectives. Our analysis considers the following:
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Asset class diversification
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Tax efficiency
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Exposure to sectors, companies, and countries.
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Asset ownership strategies.
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Aggregate expense ratios.
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Liquidity.
In addition to this analysis, personal wealth management clients also receive analysis in:
Step 3: Results and Recommendations
Upon the completion of our analysis, we review our finding with you, and we present recommendations to improve your investment portfolio and your overall financial situation. Our recommendations are clear, concise, and specific to your objectives.
The format is also tailored to you. Whether you prefer summarized information or a more detailed description, we strive to meet your needs.
Step 4: Create Investment Strategy
After we have presented the results of our analysis and we have confirmed that our recommendations are consistent with your objectives, we create an investment strategy designed to enhance your success. This strategy includes asset allocation, security selection, and account ownership. It also summarizes the portfolio’s expected rate of return, volatility, and the likely range of expected returns.
Step 5: Formalize Investment Policy
Upon mutual agreement of your investment strategy, we formalize the strategy with an Investment Policy Statement (IPS), which provides guidance in the ongoing management, monitoring, and evaluation of your investment portfolio.
The IPS outlines your investment objectives and the strategy that we have agreed to follow while managing your portfolio. Since it is built around your personal objectives, it should be revised as your objectives, time horizon, risk tolerance, and financial circumstances evolve. We review your IPS with you at least annually to ensure that it remains appropriate.
Step 6: Implementation
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Your plan is only as good as its implementation, which includes the following:
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Establish accounts and reposition assets.
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Purchase securities consistent with strategy.
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Reconciliation with financial institution.
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Create aggregate reports.
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Establish systematic transfers if required.
Step 7: Monitor and Report
“Buy and hold” does not mean “buy and ignore.” We regularly monitor the securities in your portfolio to ensure that they remain appropriate and that retention is an affirmative decision and not an oversight.
We review your asset allocation and tax positions at least monthly. If divergent asset class returns shift your allocation, rebalancing may be required. If so, we make recommendations that consider portfolio performance, income taxes, and trading expenses.
If short term volatility results in unrealized tax losses, or if other tax planning opportunities present themselves, we present recommendations to enhance tax efficiency.
We provide quarterly reports that summarize your asset allocation, investment performance, account balances, and transactions. We also provide annual tax reports.
Step 8: Return to Step 1
Your objectives and circumstances are likely to evolve over time, and we realize the importance of identifying these changes and the impact they may have on your strategy. We meet with you regularly to review your investment policy and discuss any changes in your circumstances that may require a change in your strategy.
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