How RockCrest Financial creates your personal, customized, investment strategy
Here’s how we do it:
RESPONSIBILITY TO YOU, FIRST:
RockCrest is your ADVISER and our financial planning and investment management agreements place us in a fiduciary role, where we are required to put your needs before that of the firm.
UNIQUE CUSTOMIZED INVESTMENT MANAGEMENT AND RISK CONTROL:
We start by determining your personal “risk number.” What is the right level of risk? Well, that depends on you. We use one of the industry’s leading software risk analysis programs to help determine how much risk you may be comfortable taking in the short term. Rather than fit you into an investment portfolio, we use your personal “risk number” to customize an investment portfolio that directly relates to you. So, the “risk number” of your portfolio will closely align to your personal “risk number.” You’ll know not only the range of returns you may expect over the long term, but also the range of returns you could expect over the next six months! In fact, we “stress test” your investment portfolio and can show you how it might perform in good times and bad (like when interest rates go up or down, or the market crashes or goes up dramatically).
Want to test drive our process? Find your personal risk number and see how it compares to your current portfolio… try it for free:
Unlike investment advisors who use third party investment managers, RockCrest does not sub-contract the construction of your portfolio to “outside” managers. We know “who, what, where, when and why” investments are in your portfolio. This allows us to adjust the risk level of the portfolio, as your personal risk level changes.
HOW WE BUILD PORTFOLIOS…
We invest, in part, by looking at what academic studies say will help us not only create state-of-the-art, optimized portfolios… but what studies show will help keep them that way.
Could you imagine being on an operating table and the surgeon asks you what he/she should do next? Pretty frightening! We managed portfolios on a discretionary basis. This means we create each portfolio, monitor it, rebalance it and keep you up to date… automatically. Portfolio’s are customized to meet specific needs and we automatically make changes to the portfolio as market conditions change. You don’t have to worry if you are on vacation and changes need to be made! Clients who come to RockCrest often tell us that they were not sure if their previous advisor “watched” their portfolio or based on the size of their account if they were “first or last” on the list to be called when changes needed to be made. Our method of managing portfolios allows us to make changes to clients accounts almost instantaneously… whether you have a larger or smaller account, changes are made to all clients at the same time!
We do not personally hold any of your assets, make any commissions on trades or receive any compensation on transaction fees. It is our responsibility to you to use some of the strongest and lowest cost third-party custodians (like, TD Ameritrade Institutional) in the industry to hold your accounts.
We do not react to emotional events in the markets. Sorry CNBC, MarketWatch and investment magazines… instead, we manage the portfolio based on the type of investment, it’s place in your portfolio, it’s correlation to other assets in your portfolio and market trends.
READJUSTED AND REBALANCED:
We don’t like to use terms like “conservative, moderate or aggressive.” We keep your portfolio in line with your investment goals and risk number. As your investments grow and change, there is the potential that the “risk” of the portfolio may no longer reflect your personal “risk number.” So, we constantly monitor the portfolio we manage for you and readjust (change investments) or rebalance current investments, as needed, to make sure that your portfolio’s risk level and your own risk level are aligned.
We could go on and on… but most clients are happy knowing what they own and the “high level overview” of how we choose what goes into their portfolio. However, if you’re intersted in the details of how we construct portfolios…we’d be more than happy to show you exactly how we do it!
WE KEEP YOU UPDATED AND FOCUSED (EVEN ON INVESTMENTS WE DON’T MANAGE):
Between portfolio updates, plan updates, emails, letters, phone calls and live meeting or webinars… you should never have to wonder if we are here for you. On average, clients receive some form of contact from us weekly (like an emailed portfolio summary)… and we try to keep the way that contact not only relevant, but non-obtrusive. However, we strongly believe that if you hire us to help you, we should be not only updating you on your progress, but also proving the value that we provide.
We also give clients access to RockCrest Financial’s Client Portal (via blueleaf, a leading account aggregation and performance reporting company). You’ll always see the portfolio we are managing for you, but you can also add your 401(k), outside financial accounts, even loans and mortgages to get a complete picture of your net worth. Taking advantage of the free tool allows us to help look at your portfolio in the “bigger picture” of your total assets and liabilities… it also helps us make sure that your portfolio is in line with your overall investment philosophy and tolerance for risk.
And we also offer a secure client vault to exchange documents with your advisor or keep electronic copies of important documents like your Will or Powers of Attorney.
Our approach is technically oriented, because we have found that there are many flaws to creating portfolios that are solely based on fundamental characteristics. By managing your portfolio using these technical rules, we hope to avoid oversized losses, while capitalizing on opportunities that we uncover.
DIFFERENT STAGES OF LIFE MAY REQUIRE DIFFERENT STRATEGIES
Your investments today will probably need to adapt to your needs, tomorrow. We firmly believe that different stages of life require different investment strategies. You may have heard a lot lately about the “bucket approach” to investing. Although we employ a version of this in client’s portfolios, we have used the power of academic studies to improve upon it. We create a comprehensive portfolios that are flexible and designed to produce reasonable growth with reliable and predictable income that is insulated from market ups and downs.
AN INVESTMENT POLICY STATEMENT
When you invest with us, you’ll have a customized Investment Policy Statement (“IPS”) which is a document that helps guide both you, the Client, and us, the Advisor, with the investment management of your account. This IPS lays out important guidelines that you and RockCrest agree on, like: how the portfolio is invested, your investment objectives, risk tolerance, and time horizon, performance expectations and expenses that are associated with the portfolio; trading and re-balancing considerations, and; duties and responsibilities of both the client and advisor.
Our awesome portfolio software helps us not only keep your portfolio optimized, it helps keep your taxable portfolios “tax”optimized. We don’t want you to have to pay more taxes than necessary, so our software helps balance capital gains vs losses to make help keep more of your return.
Another important situation that many retirees also fail to plan for is the additional tax considerations with an IRA in retirement, starting at age 70 ½. This has the potential to create a whole new tax issue. We can work with you, and in conjunction with your accountant if you use one, to help minimize the impact of RMDs.