Each client relationship starts with a client sharing with us, not just the quantifiable aspects of their planning and investment goals -- their risk tolerance, the age at which they want certain events to be funded for, the amount of money they hope to have available -- but they share with us their dreams and aspirations.
Once we fully understand our client's motivation, we can employ the following fee-based investment methodology:
The client is asked to complete a comprehensive questionnaire which attempts to identify the amount of risk they are willing to assume in their investment portfolio. Utilizing techniques from "Modern Portfolio Theory" we are able to easily quantify the amount of risk their portfolio should have. In virtually every future conversation with the client, the amount of risk the client is comfortable taking is discussed and matched against the current risk of the portfolio so that proper adjustments can be made.
A client's existing assets are analyzed in a comprehensive, written report that details the portfolio's asset allocation, risk, expense ratio, tax-efficiency, redundancy of holdings, and performance.
Also in written form, our observations are presented to the client so that we can discuss how their current portfolio could be altered to enhance any of the aspects listed above.
A detailed report is provided that demonstrates exactly which items should be sold, and when, and precisely what assets should be purchased, to achieve the new Target Portfolio. Careful consideration is given to any tax implications that might result from these moves and how to mitigate or postpone them, and if any contingent deferred sales charges might exist on the assets to be sold.
Our expert staff prepares the appropriate applications to open a client's new accounts, and completes, sends, and monitors the required forms to notify the existing brokerage company to transfer the assets into the client's new accounts. Once the assets arrive, they are carefully audited to ensure that all requested items have arrived.
Trades are executed to sell off undesirable assets, as indicated in the report provided, and purchases of targeted assets are made, in a fee-based, objective environment.
At Marciano Wealth Advisors, building a client's investment portfolio is unique and personalized to each client. There are no "cookie cutter" solutions, but instead, portfolios designed to specifically address the amount of risk each client is willing to undertake in the pursuit of their desired outcome.
Once a specific level of risk is quantified, a unique asset allocation portfolio is created based on several critical evaluative components:
History tells us that certain asset classes perform better or worse based on the stage of the economic cycle our economy and the world's economy is in. Our allocation models reflect the current interest rate climate, growth or value tilts, domestic and international economic conditions, and other macro considerations that help us shape our decision to overweight or underweight various sectors. We monitor these sectors and holdings constantly.
Performance of Each Holding, Relative to Risk and Net of Fees, as Compared to Competing Investments:
Whether the asset is a no-load mutual fund, an exchange-traded fund (ETF), an individual stock or individual bond, our proprietary research methodology requires that we constantly evaluate its performance, relative to risk and net of fees. Since our approach has no bias and has no transaction charges or commissions, we are strict in removing underperformers.
Any drag on performance, including taxes, are carefully considered with every holding, and within every account we manage.
At the end of each calendar quarter, our clients receive a comprehensive report detailing performance, drilled down from the account level to each individual asset class and holding. In addition, in writing, we indicate any buy/hold/sell recommendations needed to be executed to keep the portfolio within the strict allocation guidelines established from the client's shared objectives
This comprehensive report is sent along with an invitation to schedule a quarterly call or visit to review the portfolio, to discuss any life or financial planning changes, or merely to just to "catch up" with one another.