At PlanStrong, we have developed a number of proprietary tools and approaches to analyze portfolios and underlying investments. We complement that capability with extensive research on asset classes, sectors and specific investments, using a broad array of resources. Recommendations for specific investments result from a quantitative analysis, and then a qualitative review to take into account factors that may not be obvious in the financial review.
We use the following approach when working with clients to develop and implement an investment portfolio:
- We conduct an extensive, proprietary, existing portfolio analysis, categorizing all existing holdings and evaluating their past performance. We do not use a blanket “sell it all” approach when recommending modifications.
- We work with clients to determine their investment goals (saving for retirement, college, etc.,) and associated risk tolerance for that goal.
- We review overall asset and sector allocation vs. proprietary targets for that risk tolerance.
- We identify over and under exposure to the desired allocation, and work to incorporate desirable existing holdings into the recommended solution.
- We complement retained investments with additions to meet the target investment allocation by asset class, sector and individual security.
- We model the proposed solution to compare relative risk and return vs. the existing portfolio and current benchmarks. We also review potential tax implications to recommendations made*.
- We provide regularly scheduled investment reviews to assess performance vs. agreed upon benchmarks. In addition, on an unscheduled basis, we proactively reach out to clients to discuss modifications as market conditions change.
*Neither NEXT Financial Group, Inc. nor its representatives offer tax or legal advice. Please consult your tax or legal professional before taking any action.