My practice’s primary clients are baby boomers who have accumulated a significant amount of assets in preparation for retirement. Though they have likely been successful in their field of work, they generally need substantial education and professional guidance in planning for the switch from the accumulation phase to the distribution phase of their financial lives. It can be a somewhat nerve-wracking proposition, and we are here to help them plan for it in a disciplined, risk-managed, and tax-advantaged way.
At the end of the day, I want clients to know that our firm is dedicated to delivering solutions for their most important financial issues without being cost prohibitive. We have terrific resources throughout our organization, including teams in case design, research, technology, and product specialists. We also have access to the deep resources of our money managers, who bring their own research capabilities, technologies, strategic models, and execution. I believe it is a formidable package of knowledge and expertise.
We have developed a proprietary approach to retirement income planning called the Lifetime Income Model. This approach pursues managing the risk to client investments by using both a time-based approach to distribution and asset growth and through actively managed investment strategies.
I currently use two different third-party investment managers and generally believe that client portfolios need to be well-diversified and use several different strategies. It is critically important that the managers I work with have a range of strategic options and that they deliver excellence in service, research, execution, and reporting. I also want to see that their strategies have historically delivered on the objectives they were designed to address. Of course, not every strategy works perfectly in every market environment—that is why we want to diversify by using different strategies.
I do not want to spend countless hours meeting new investment managers and conducting analysis and due diligence. That is not good practice management. Therefore, I take the consideration phase of selecting third-party investment managers very seriously, and I hope to work with them for some time. I have visited both of their home offices, and I meet with their representatives regularly. I attend their conference calls and webinars. I dig deeply into the specific parameters of each strategy that I have under consideration from their firms. I am convinced they provide the value and solutions my clients need.
Disclosure: Securities offered through LPL Financial, member FINRA/SIPC. Investment advice offered through Integrated Wealth Concepts, a registered investment advisor. Integrated Wealth Concepts and Integrated Financial Partners are separate entities from LPL Financial.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a nondiversified portfolio. There is no assurance that the investment objective of any investment strategy will be attained. No strategy assures success or protects against loss. Historical performance is no guarantee of future results.
Photography by Melissa McClain