THE SIX STEPS TO A SUCCESSFUL INVESTMENT PLAN
STEP 1: Arrange for a Get Acquainted Meeting:
- Kent provides preliminary information.
- You complete and return the Confidential Questionnaire with an overview of your investments at least 48 hours prior to the meeting.
STEP 2: Get Acquainted Meeting
- You describe your investment objectives, needs and personal situation.
- Kent describes his philosophy, explains the investment strategy and provides you with examples of the final product.
- Kent quotes a project fee based on an estimate of the hours required.
- If the fee is accepted we begin work immediately or set up an information-gathering meeting.
- If you choose not to take the next step you are free to leave without any obligation whatsoever.
STEP 3: Information Gathering and Analysis
- Kent will ask a number of questions to help determine:
- Your specific investment objectives, your appropriate level of investment risk, acceptable and unacceptable investments, the investment assets dedicated to your objectives, Employer Retirement Plan specifics (investment options, expenses, etc.) and other pertinent investment information.
- Partial payment is due at the end of this step.
STEP 4: Written statement of Project Goals and Tasks (PGT)
- A written restatement of the client’s goals and the specific tasks that need to be performed is prepared to ensure that we agree on the goals and the tasks that need to be performed.
- A rough draft of the Investment Policy Statement (IPS - the client’s expressed wishes about the major investment policies governing how the investments are to be managed) is prepared.
- The assets dedicated to the Plan’s stated investment objectives are identified.
- Other information may be requested.
- The entire package is mailed to client for approval or correction.
STEP 5: Meeting to present the plan to the Client
- When the PGT is approved, the final plan, IPS and recommendations are completed along with supporting documents.
- The complete plan is presented:
- Explanation of investment strategy, underlying assumptions and other information.
- The Investment Policy Statement is reviewed and approved.
- Observations and Conclusions are presented.
- Specific buy and sell recommendations (with justification).
- Spreadsheets detailing current situation and the effect of recommended changes are presented showing:
- Recommended asset allocation percentages.
- Strategic (long-term) and Tactical (interim) allocations.
- Mutual Fund expenses (how much do you pay in fees?).
- Assets dedicated to meet retirement withdrawal requirements.
- Results when recommendations are implemented.
- Prudent withdrawal rates and how long the capital should last.
- Action Plan.
- Supporting documentation including investment fact sheets.
- The remainder of the fee is due at the conclusion of the meeting after the plan has been presented and explained to the client’s satisfaction.
STEP 6: Monitoring and Maintenance
- Quarterly newsletters and follow-up emails
- Clients are encouraged to call whenever they have questions or concerns
- Annual Review and Rebalancing of the Portfolio (based on hourly rates) including an analysis of the effectiveness of the plan along with a review of stock and bond markets, the economy and the portfolio.