Determine appropriate Target Rate of Return (TRR)

Determining the TRR is one of the first essential steps. A result of the planning process, this number represents a guideline establishing the proper balance between risk and return of your investment portfolio and is used for all investment management decisions.

Assess Current Situation

The existing client portfolio is reviewed to determine suitability of the assets currently in place. Every effort is taken to minimize creation of negative tax consequences especially where qualified and non-qualified accounts are involved. As necessary, other portfolio elements are adjusted in order to meet TRR requirement.

Develop the Investment Policy Statement (IPS)

The IPS outlines three critical parameters for the client portfolio: Asset class types and percentages used to create portfolio; the overall risk profile for the portfolio; and the Targeted Rate of Return for the overall portfolio asset mix.

Current Asset Review, Suitability & Adjustments

Once the prior parameters are in place, the process is started to put in place the appropriate asset allocations that will seek to generate the TRR. This takes time and expertise as often assets are moved or changed and due care must be taken to avoid unnecessary tax impact.