Goal-Based / Client-Based

The information that comes out of our financial planning process is vital to designing your Core Portfolio. We experiment with portfolios of different stock percentages. For example, we may consider how a 50% stock portfolio helps you achieve your goals vs. a 40% or 60% stock portfolio.

We also consider your comfort level. Maybe the 60% stock portfolio provides for a higher success percentage, but you’re uncomfortable with that amount of stocks. Perhaps we lower to a more comfortable 50% stocks and look at other adjustments (more savings, etc.) to still make the plan successful.

The “what if” scenarios we run in your financial plan allow us to narrow down which portfolios we can use. We call this approach “goal-based / client-based”. The Core Portfolio has to work for your situation, and you have to be comfortable with it.

The Core Portfolio also has to be adaptable. Most of the time, we cannot implement a pure Core Portfolio because people contend with one or more portfolio constraints like:

• limited investment options in their 401(k)
• taxes on capital gains if certain positions are sold
• surrender charges on annuities and commission funds
• and/or concentrated company stock if they have stock options or restricted stock

We’ll incorporate these limitations into your portfolio and adjust as necessary.