Investment Management
We provide our clients with investment management on a fee-only basis, acting in a fiduciary capacity. We do not sell product, and we do not accept commissions for selling product. We practice a disciplined approach to achieve diversification and manage risk appropriately on your behalf.
Comprehensive Financial Planning
True comprehensive financial planning is the act of planning for, and prudently addressing life events. The development and implementation of a comprehensive financial plan is the foundation, or roadmap, to achieving ones goals. The comprehensive plan provides a rock-solid foundation on which a client can build and maintain their financial security.
Trust Services
Focus works with National Advisors Trust Company to provide trust services to our clients and their families. National Advisors Trust provides first class trust and custodial services traditionally offered by trust companies and brokerage firms, but with personal attention, and at favorable costs. This includes reporting, record keeping, executing transactions, safeguarding assets and protecting the confidentiality of personal financial information.
Investment Management
The appropriate investment of your assets is a critical part of your overall financial plan. At Focus, we practice a disciplined approach to achieve diversification and to manage risk appropriately on your behalf. Our management of your portfolio will be guided by your investment policy statement. This is a document that we create with you after a detailed review of your entire financial situation. It takes into account your total investment needs, your risk tolerance level, income tax considerations, your goals and dreams, and your unique time horizon.
Our Duty as Fiduciaries
As Fee-Only financial advisors, we have taken a fiduciary oath to act in good faith and to always act in our client’s best interest. As fiduciaries, we are also bound to put the interests of our clients ahead of our own. The National Association of Personal Financial Advisors (NAPFA) defines a Fee-Only planner as “one who, in all circumstances, is compensated solely by the client, with neither the advisor nor any related party receiving compensation that is contingent on the purchase or sale of a financial product.” Simply put, we will not accept commissions, rebates, awards, finder’s fees, bonuses or any other form of compensation for purchasing any investment product on behalf of our clients.
Our Investment Approach
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The process begins with in-depth client discussions designed to determine your current situation, needs, goals, timetables, and risk tolerance.
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Next, we create an investment policy appropriate to meet your needs and respond to your concerns.
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We then assemble a portfolio using a variety of diverse assets geared toward achieving a reasonable return while minimizing taxes and controlling risk. In addition to holding a diverse basket of equities and fixed income, further portfolio diversification may be achieved by including special asset classes such as commodities, real estate, hedged equity, or other alternative investments.
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Where practical, investments that are tax-inefficient are placed in tax-deferred accounts, such as IRAs, where the tax consequences are reduced or eliminated.
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Depending on your investment profile and current market conditions, your portfolio will consist of a combination of exchange traded funds (ETFs), index funds, individual bonds and actively managed funds.
Our Investment Philosophy
While we are certainly not in the business of short-term trading, we are also not strictly “buy and hold” investment managers. The buy and hold philosophy, which has been touted in the popular financial press for many years, in our view, has serious drawbacks. Even investors with well-diversified portfolios lost up to 50% or more of their portfolio value during the bear market of 2008 while following this strategy. On the other hand we are not “market timers”. Market timing is often referred to as the opposite of Buy and Hold. Adherents to this approach attempt to maximize returns and avoid losses by trying to pinpoint the exact tops and bottoms of markets and individual security prices. We don’t believe this is possible, and we are unaware of anyone who has been able make these calls with any consistency.
If we are not purely Buy and Hold managers, and we are not market timers, what are we? Well, our philosophy represents somewhat of a compromise between the two camps. We believe in taking advantage of long-term established trends. We certainly prefer to make long-term investments, but we will reduce market exposures when trends clearly turn down. The goal here is to capture the greater part of a bull market, and avoid the full impact of a bear market.
Our objective is to provide our clients with a reasonable return on their investment, and one that is in line with their needs and goals. We do not believe in getting rich quickly by trading “hot stocks.” Rather, our approach is to preserve and grow our clients’ money over a period of time using a broad array of assets.
Comprehensive Financial Planning
True comprehensive financial planning is the act of planning for, and prudently addressing life events. The development and implementation of a comprehensive financial plan is the foundation, or roadmap, to achieving ones goals. The comprehensive plan provides a rock-solid foundation on which a client can build and maintain their financial security.
At Focus, we offer true independent and unbiased comprehensive financial planning on a fee-only basis. Based on each client’s individual goals and dreams, we help develop and then implement a comprehensive plan that is uniquely tailored to their needs focusing on the following critical areas:
- Financial (and Non-Financial) Goal Setting and Goal Achievement
- Investment Management and Asset Allocation for enhanced returns
- Retirement Planning (including Monte Carlo simulation)
- Estate Planning
- Cash Flow and Savings Analysis
- Insurance, Risk Analysis and Risk Reduction
- Tax Planning and Effective Tax Reduction Strategies
- College Funding (for Children & Grandchildren)
- Getting the Most from Executive Compensation and Stock Options
The Six Steps To Success
Many of our clients are surprised at how involved and in-depth our financial planning process is. It is not uncommon for us to meet with our clients several times before the initial plan
is complete.
Step 1 >> Establishing and Defining the Client-Planner Relationship
During the first meeting, it is critical that the planner and client engage in a dialog that clearly defines what is expected of each party. This is a mutual process in which a determination is made as to what services will be provided, and what the cost will be.
Step 2 >> Gathering Client Data, Including Goals and Dreams
This is the one step in which the client does most of the work. In order for us to create a plan that meets your needs, we need to have a complete understanding of your financial situation, your goals and dreams, your interests and hobbies, your expectations about employment, your risk tolerance level, any anticipated changes in lifestyle, and even the health status of you and your family.
Step 3 >> Analyzing and Evaluating the Client’s Financial Data
At this stage of the process, we review all of the data, documents and other information that you supplied to us in Step 2. We analyze the data to identify strengths and weaknesses in your total financial situation with respect to the achievement of your stated goals and dreams.
Step 4 >> Developing and Presenting the Financial Planning Recommendations
We use our knowledge and experience, along with sophisticated financial planning software to generate your plan. That plan will identify appropriate techniques for achieving your objectives in light of the current economic environment. These recommended techniques, along with our analysis of your current situation, will be presented to you in a written report at a face-to-face meeting. We will discuss areas which need immediate attention and suggest a timeline for the implementation of the plan.
Step 5 >> Implementing the Financial Planning Recommendations
The finest financial plan in the world has little value without proper implementation. It is at this point in the process that we actual put your plan into action. If Focus is managing you investments, we would begin allocating your investment assets according to our agreed strategy. We also guide you through the parts of the plan that you can accomplish on your own, and coordinate the efforts of other professionals needed to implement your plan, such as accountants, estate planning attorneys and insurance professionals.
Step 6 >> Monitoring the Financial Planning Recommendations
It is this stage of the process that makes up the greater part of our daily duties here at Focus. At this point, we are monitoring the performance of your investment portfolio, changes in the law that may affect you, and the general economic climate. We will meet with you regularly to discuss changes in your situation, recommend specific actions in response to those changes, and examine the general progress of your financial plan.
Trust Services
Focus works with National Advisors Trust Company to provide trust services to our clients and their families. National Advisors Trust provides first class trust and custodial services such as those traditionally offered by bank trust companies and brokerage firms, but with personal attention, and at favorable costs. This includes reporting, record keeping, trade execution, safeguarding assets, and protecting the confidentiality of personal financial information.
National Advisors Trust Company, a federally chartered, advisor-owned trust company, was created in 2001 by more than 120 independent financial advisors to provide their clients with corporate trustee and other fiduciary services. This was in response to the advisor’s concerns regarding declining service levels and higher costs associated with the widespread consolidation of banks and their trust departments.
Although National Advisors Trust acts as trustee, Focus will serve as your primary advisor. This ensures that fiduciary matters are conducted in a manner consistent with your long-term goals and objectives while maintaining sensitivity to your unique family needs. If you have an existing trust relationship, Focus and National Advisors Trust can coordinate the transfer of the fiduciary responsibilities and management of the trust assets.
Fred Raffety, owner of Focus Financial Advisors, is a shareholder of less than 1% interest in National Advisors Holdings, Inc., which is the parent company of National Advisors Trust.
