At 1650 Wealth Management, our investment methodology is based upon a disciplined approach to wealth management. We strive to assist our clients in avoiding emotional reactions that can result from the inevitable ups and downs of economic cycles during their lifetimes. Our thoughtful process creates an investment plan based on each client’s unique financial situation with a focus on achieving life goals for our clients and their families.
The 1650 Wealth Management Investment Process:
Step 1: Establish and Define the Client-Advisor Relationship
We seek to understand what you want to accomplish by working with our firm. Typically, we work with busy executives, small business owners, dual income families, estate beneficiaries, and pre- and post-retirees who want to utilize our expertise in constructing portfolios in order to free them to focus on work, retirement or spending time with their family and friends.
Step 2: Gather Client Data and Determine Goals and Expectations
We want to learn about your short and long-term financial goals. We seek to understand your tolerance for risk, your stage in life, your experience with different types of investments and your short and long-term goals for your wealth. We gather information related to your financial balance sheet to form a complete picture of the starting point on your financial journey.
Step 3: Analyze and Evaluate the Clients’ Financial Situation
We analyze the current allocation of your wealth among your various accounts (IRA’s, 401k’s, brokerage accounts, etc.) to determine if you are over or underweight specific asset classes. We want to understand if your current portfolio is focused on growth or income, or a combination, and if the investments utilized are appropriate for accomplishing your goals and objectives.
Step 4: Develop and Present the Investment Recommendations and/or Alternatives
Once we fully understand your financial situation, we prepare and present an Investment Policy Statement (IPS) to you. Your IPS serves as the “blueprint” or “road map” for accomplishing your short and long-term goals and objectives and contains our recommendations based upon your financial situation, goals and risk profile. The Investment Policy Statement is presented to you for your feedback and approval.
Step 5: Implement the Investment Recommendations
After we receive your feedback and approval of your Investment Policy Statement, we will create your portfolio by investing in a variety of investments which will include mutual funds, exchanged traded funds (ETF’s) and structured notes. We are always very tax aware when investing your portfolio and will allocate tax inefficient investments to tax sheltered accounts and tax efficient investments to taxable accounts when possible.
Step 6: Monitor the Investment Recommendations
After your portfolio is invested, we will continue to monitor your assets on an ongoing basis and make adjustments as needed to stay on course with your Investment Policy Statement. As your financial steward, we are focused on watching over and taking care of your assets, so you can feel confident you are progressing steadily towards both your short and long-term goals.