To successfully implement a total wealth plan, you need an investment process which is dynamic and adaptable. Our process:

  • Begins with the development of your financial plan, which includes a side-by-side stress test of your goals, savings, and income versus potential portfolios. This statistical simulation includes 1,000 possible market environments and helps us identify the minimum risk required to assist you in realizing your goals.
  • Continues with the design of a dynamic, rules-based portfolio asset allocation, integrated into four main components:
    • Strategic asset allocation, which focuses on the optimal core asset allocation driven by your financial plan. This component of the portfolio directs our long-term decisions – the appropriate balance of stocks, bonds, cash, commodities, etc. for an individual in an “ideal world.”
    • Rules-based tactical changes to manage risks or capitalize on opportunities that exist in the short term. We outline our overweight/underweight allocation tolerance boundaries for each asset class and use predefined rules to guide these tactical changes.
    • Customization of the portfolio on a client-by-client basis.
    • Investment selection seeking low-cost, tax-efficient vehicles, where appropriate.
  • Concludes with a regular, systematic review process. We monitor each client portfolio daily and have discretion to make investment changes when needed.  This allows us to take quick and decisive action between review meetings (always within the constraints of your objectives, time horizon, and risk tolerance).  If larger, more fundamental, changes are recommended, we meet to discuss those with you first.  We report back to clients in each review meeting with recent changes to their specific portfolio, our economic and market outlook, and detailed performance data.  Clients have online access to these figures between meetings and we’re always available to answer questions or provide abbreviated market updates between meetings.

Our investment philosophy is just one component of the value of the BWM Financial experience, but an important one. An entire portion of our introductory meeting delves deep into our investment process and how it relates explicitly to the portfolios that we build for each client and account.

No strategy assures success or protects against loss.  Tactical allocation may involve more frequent buy and selling of assets and will tend to generate higher transaction cost.  Investors should consider the tax consequences of moving positions more frequently.