We choose risk with intention.
Combining math + psychology to develop a strategy that works for your goals (and doesn’t keep you up at night).
How we determine your allocation:
BASELINE
The plan tells us how hard the portfolio has to work
Before any allocation decision, we determine the cash-flow needs, time horizon, and must-hit goals.
WHAT-IFS
We stress-test the plan against worst-case scenarios
We test the plan against market drawdowns, inflation spikes, and longevity before the portfolio has to face them.
PSYCHOLOGY
Finding a strategy you can live with, even during market stress.
Many of our clients have a wide viable range.
Comfort becomes the deciding factor, because you'll need to stay with it when volatility occurs.
Types of risk we’re thinking about:
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Market drawdown / Volatility
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Inflation / Interest rates
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Sequence of returns
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Longevity / health
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Catastrophic events
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Portfolio concentration / liquidity
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Tax law changes
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Residency / cross-border
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Estate and gift rules
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When a risk can't be eliminated, there are three ways to deal with it.
Consider, as an example, the risk of premature death:
Live with it
If the family doesn't depend on that person's income, their death doesn't change the plan's math. The risk is acknowledged; no action is required.
Delegate
Buy life insurance. The financial impact is transferred to an insurer.
Mitigate
Restructure the baseline plan so it doesn't rely on that person's income (earlier retirement assumption, reduced spending, additional savings).
DIVE DEEPER:
Fee
Efficiency
Investment costs come from four places: advisory fees, fund expenses, trading, and idle cash. We work to reduce each one.