The Financial Planning Process:

The financial planning process begins by talking about your goals in life and the concerns you have about reaching them. We gather information about your financial situation and then define and prioritize your goals making realistic assessments about the future. We review your cash flows and prepare a detailed analysis considering life events such as the purchase of a residence, education funding, and retirement. Additionally, we review insurance coverages to ensure that your family is adequately protected from the consequences of unplanned events that often derail future plans. Next, we coordinate with Perlson Touhy and your legal advisors to minimize income and estate taxes as well. Once we have obtained a detailed understanding of your financial circumstances, including your long-term cash flow situation, we can begin the portfolio planning process.


The Portfolio Management Process:

Portfolio Planning:

Investors must have clearly defined needs and goals prior to investing; therefore the portfolio management process must be preceded by the financial planning process. The portfolio planning process that we offer JPWM clients may include the preparation of an Investment Policy Statement, (IPS). The IPS is used as a set of customized guidelines to invest client assets specifically for their circumstances and goals established in the financial plan.

Portfolio Philosophy:

We believe it is prudent to diversify investment exposures over numerous asset classes and asset class sectors in an attempt to reduce the risk of sustaining substantial losses. This exercise is commonly referred to as asset allocation. We believe that the allocation of an investor’s assets is an important determining factor in long term portfolio performance. We utilize a flexible strategic asset allocation foundation that allows for the tactical tilts we feel are necessary to reduce risk when asset valuations, the economic environment, and other considerations warrant.
Portfolio Strategy:

We employ a globally diversified asset allocation strategy. Portfolios utilize three methods of investing, which include, passive, indexed and active management. We normally maintain a core of passive and indexed investments supported by appropriate active portfolio managers. We believe that it is very difficult for active portfolio managers to consistently add value in many asset classes and asset class sectors, but not impossible. We feel that there are specific asset classes, market conditions and situations that may allow active managers to add value. We feel the overall combination of these methods produces portfolios designed for long term success with proper diversification and liquidity.

Portfolio Implementation:

We implement portfolios utilizing various types of securities including mutual funds, exchanged traded funds (ETFs), closed end funds, and individual bonds to name a few. The decision of what method of investing and type of security we use to gain exposure to an asset class is influenced by many factors including but not limited to, the asset class or asset class sector being invested, asset valuations, the economic environment, taxes, liquidity and the costs associated with investing.

Portfolio Reviews, Reporting, and Rebalancing:

Portfolios are reviewed at least quarterly and rebalanced as necessary according to client needs market and economic conditions and other influential factors. Performance reporting is done on a quarterly basis and benchmarked to client goals annually.