INVESTMENT ADVISORY & PORTFOLIO MANAGEMENT SERVICES

Because a client's ability to achieve other financial planning objectives is often dependent, in whole or in part, on the ability to select investments and assemble an investment portfolio which will achieve desired results within allowable time frames, effective investment management is a critical element of the financial planning process.

The following elements comprise our investment advisory and portfolio management services:

Establish realistic investment goals and expectations Establish time frames for achieving those goals Evaluate the client's investment experience and tolerance for assuming investment risk Develop an investment strategy consistent with the above Select investments to implement the strategy Monitor performance of individual investments, the portfolio and portfolio managers Adjust investments and rebalance the portfolio as necessary

The selection of the investment assets to comprise a portfolio is perhaps the most important decision that the client will make. Unfortunately, all to often, individual investment decisions are made "piecemeal" without regard to how each individual investment will impact the overall risk and potential return of the that portfolio. I attempt to overcome this shortcoming by applying the principals, tools and techniques of modern portfolio theory to construct portfolios which endeavor to maximize the level of expected returns for a given level of assumed risk or to minimize the level of risk for a specified required rate of return.

The Asset Allocation Analysis process begins with the client completing a Risk Tolerance Questionnaire which provides information regarding the client's near and long term investment goals and objectives, time horizons, current investment holdings, attitude toward specific categories of investments and finally, the client's willingness to assume investment risk.

The goals and objectives of the client are evaluated in the context of the current investment portfolio and the client's indicated risk taking capacity and attitude toward the various investment classes. This evaluation includes the use of sophisticated statistical modeling which evaluates the existing portfolio in terms of its ability to achieve stated investment goals and objectives within the time horizons specified as well as the relative efficiency of the existing portfolio in maximizing returns and minimizing investment risk.

In assessing the overall risk of a portfolio, it is not sufficient to merely observe the risk of the individual investment classes within that portfolio.  Rather, it is necessary to observe how the individual investments within the portfolio interact with each other since the influence of the risk of the various investment classes on each other can dramatically affect the overall risk of the portfolio in its entirety. The statistical models evaluate the overall risk of the client's existing portfolio and in the modeling of "optimized" portfolios designed to maximize the portfolio's return for the level of risk being assumed or to reduce the overall risk level for the return required.  In addition, these models will help to identify investments to be added to the portfolio which are consistent with the return maximization or risk minimization modeling described above.

I do not recommend individual securities too my clients. Rather, I rely on independent investment professionals, such as mutual fund managers and private portfolio managers, to handle the selection of individual securities consistent with the overall investment strategy adopted by the client. I will monitor the performance of these investment professionals against appropriate benchmarks.  I will also continuously evaluate the composition of the portfolio and the mix of investments to make certain that the composition of the portfolio continues to be consistent with the client's overall investment strategy and continues to offer the maximum expected returns for a given level of assumed risk or to minimize the level of risk for a specified required rate of return.

All advisory services are provided on a non-discretionary basis. I will exercise no independent discretion over the selection process or the investments actual chosen.  All such decisions are made by the client based upon our advice and recommendations.  In some instances, the client may choose to delegate investment selection to a third party (e.g., a mutual fund manager, a private investment manager, etc.). In these situations, I will make recommendations based upon the client's overall investment strategy and other circumstances. Any engagement entered into will be between the client and the third party.

COMPENSATION

I am a FEE ONLY planner. This means that my revenue is exclusively from fees charged as a part of the financial planning process.  I DO NOT receive (nor will I accept) commissions or other product-sale related compensation as a result of the client's purchase of investments and other financial products.  Where investments or other financial products are indicated to help the client achieve specific planning objectives, I will generally recommend those products that do NOT pay commissions or other compensation (so called "No Load" products). However, in some circumstances, the most appropriate or the only available product to meet the client's needs may pay commissions.  In those instances,commissions or other sales related compensation that generated as a result of the client's purchase of such products may be payable to a person or entity that is properly licensed to sell such products.  In these instances, I may receive referral fees or other compensation from the person or entity through whom such products are purchased.  All such compensation will be disclosed to the client in writing and will be applied to offset any financial planning or consulting (but NOT asset management) fees otherwise owed or generated by the client as a part of the financial planning process to which such product purchases relate.

Compensation Sources

The Client's best interests come first. All recommendations will be, first and foremost, in the best interests of my clients and will never be based upon the amount of compensation that I might receive. When requested, I will work with clients on a fee-only basis. Where appropriate, I may refer clients to other professional advisors to provide qualified or professionally licensed to provide. Such areas would include preparation of personal income tax returns, drafting of legal documents and the rendering of legal advise.  I may receive direct or indirect financial compensation from these referrals. I may also receive reciprocal referrals from these other professional advisors which could result in financial compensation for professional services rendered on behalf of these referrals or on behalf of their professional advisors. I do not act as a general partner or principal nor receive compensation as a general partner or principal from any of the investments I may recommend. Although I am educated as a lawyer, I do not practice law nor do I render legal advice.