We are a local independent financial planning and wealth management firm. We are focused on one goal – helping individuals, families, and businesses make wise financial decisions. We are passionate about honoring our clients’ individual goals and preferences. Our goal is to preserve and grow their assets so that retirement goals are addressed and a legacy is passed on to their loved ones. We hold ourselves to the highest levels of integrity and accountability to ensure that we are doing our absolute best for each and every one of our clients.
6 Key Steps to a Successful Financial Plan
In order to get to know you and understand your goals and objectives. This is an important conversation to establish a foundation for our relationship. Any initial questions or concerns will be discussed free of charge.
We will need to gather important data for analysis such as investment statements, tax returns, insurance policies, etc. In addition, we run through an exercise to determine your own unique level of risk tolerance using the risk number method.
ANALYZE THE DATA
To determine if you are on a realistic path to pursuing your goals and objectives, analyzing the data is a key step in the financial planning process. This includes measuring the risk within your current investment portfolio and financial plan, then stress testing them under unexpected financial variables, both positive and negative.
Your advisor will make recommendations and specific action items regarding your plan and investment portfolio will be discussed. We will visually review the stress test results of both the current and recommended plans and portfolios. We work with and provide references to qualified professionals as needed, i.e. CPAs and Estate Planning Attorneys.
IMPLEMENTING YOUR PLAN
Our goal is to do all we can to ensure transactions are executed promptly and smoothly. A plan is only as good as its implementation! Our goal is to continually educate you on healthy investment practices during this entire process.
MONITORING THE PLAN
A good advisor will continuously monitor your investment portfolio and financial plan, which includes adjusting and rebalancing it to accommodate ever-changing economic and personal circumstances. This involves regular review meetings, critical to the success of the overall plan.
We Are Fiduciaries
Our clients have placed us in a position of trust and we take that duty seriously. As fiduciaries for our clients, it means we follow a high fiduciary standard of care that requires us to put your interests above our own.
You can trust that we will:
» Act in your best interest
» Be transparent about costs and fees associated with our services
» Disclose any conflicts of interest that may be present when providing recommendations
» Help you understand all of the options available to you
» Provide prudent investment advice
» Avoid high cost or high commission products
» Be truthful with you about the risks you take when investing
If you are worried that the advisor you are currently working with may not be acting in your best interest, schedule a meeting with us and get a second opinion. The initial consultation is complimentary and it may help put your mind at ease.
Is Your Portfolio Properly Allocated for Your Actual Risk Tolerance?
We all look at rewards and risks differently based upon our varying life experiences and personal financial experiences, this is normal.
At IWA we utilize a Risk Number to objectively pinpoint individual investor risk tolerance. The Risk Number questionnaire process was built upon decades worth of behavioral economic work including, but not limited to, the academic framework called Prospect theory (Princeton.edu) which won the Nobel Prize for Economics in 2002.
The Risk Number, and corresponding risk/reward range, empowers the advisor-client relationship with stated expectations. Gone are the days of clients and advisors putting their faith in subjective, loosely defined semantics such as moderate, conservative, moderately conservative.
THE RISK NUMBER™ TOOL
Risk Number™ is powerful technology that identifies acceptable levels of risk and reward in your financial portfolio that you are comfortable with. Using this tool, we ensure that your portfolio aligns with your investment goals and expectations. Together we strive to take the guesswork out of your financial future.
With a Personal Risk Number™ You Will:
» Learn About Your Risk Tolerance
» Align Your Portfolio Objectively
» Address Your Retirement Goals
CAPTURING YOUR RISK NUMBER™
The first step is to complete a 5-minute questionnaire that covers topics such as portfolio size, top financial goals, and what you’re willing to risk for potential gains. Then we’ll pinpoint your exact Risk Number™, and use it as a guide in creating your individual financial plan.
» Review Your Current Investments
A lot of people have more risk in their portfolios than they previously realized. This technology empowers us to make sure the Risk Number™ of your portfolio matches your personal Risk Number™.
ALIGNING YOUR PORTFOLIO
After pinpointing your Risk Number™, we’ll craft a portfolio that aligns with your personal preferences and priorities, aiming to help you to feel comfortable with your projected outcomes. The resulting proposed portfolio will include projections for the potential gains and losses we should expect over time.
» Stress Test Investments
Stress tests illustrate how your proposed portfolio would have fared through various market events over the past 8 years, including the financial crisis and recovery.
» Review Risk & Reward Potential
We can visualize the risk and reward profile for each individual investment we propose for your portfolio. Illustrating risk, reward and diversified risk gives us a powerful tool to review before we make any final investment decisions.
ADDRESSING YOUR RETIREMENT GOALS
We will also review your progress toward your financial goals by building a personalized Retirement Map. When we are finished, you’ll fully understand what we can do to increase the probability of success.
REAL WORLD CASE STUDY
LUKE & JEN SMITH
RETIRED, AGES 67 & 64
The Smiths are a retired couple who reached out to us to review their portfolio after becoming concerned with its performance. We examined the portfolio and measured the risk within, and determining that it had a risk number of 78.
CURRENT PORTFOLIO: RISK #78
ACTUAL RISK TOLERANCE: RISK #29
After taking the risk exercise we discovered that their true risk number was 29, significantly lower than the current amount of risk carried in their portfolio. The Smiths were taking far too much risk according to their true risk tolerance, it’s no wonder they felt so uncomfortable with their retirement savings investment portfolio! The Smiths became clients and we implemented a financial plan & a portfolio that was in accord with their risk number and current lifestyle all the while seeking opportunity in the current economic landscape.