How It Works

Our Advisors use an active investment management approach that's very different from the traditional model portfolios you may be used to. Suggested portfolio changes are provided by email and/or phone timely for you to take advantage of opportunities.


 

Real-Time Adjustments vs. Quarterly Rebalancing:

Traditional portfolios typically rebalance on a set schedule (e.g., every 3 months) no matter what's happening in the market.

Triggering Event Difference:

Sudden, market moving events (like 9/11) suggesting an immediate portfolio reaction.

Situation Awareness

Portfolio response is conditioned on current as compared to future potentialities, i.e. driving in heavy highway traffic-do you look two or three cars ahead to determine your action

Customized, Not One-Size-Fits-All:

Importantly, this active approach isn't a generic formula applied to everyone. It's personalized to you.

Set-It-And-Forget-It Approach: Most 401(k)s follow a "set it and forget it" model. For example, a target-date fund or model portfolio will stick to a fixed mix of stocks and bonds based on your age, rebalancing only once a quarter or year. Traditional portfolios often react slowly, potentially missing chances to reduce risk or capture gains promptly.

Management Process

1. Introduction - Review analysis: Collect information of investment options offered by plan provider, operational restrictions such as "lock out period" on fund transfers, etc.

2. Risk Assessment based on immediate Situation Awareness & Timing Strategies - Tactical vs. Strategic plan of action. Active management means having the flexibility to make timely tactical moves. For example, if a particular sector (say technology or healthcare) is facing troubles, a traditional static portfolio would simply endure the decline maybe rebalancing at the beginning of the next quarter. Our advisor's strategy would proactively trim or exit that sector in your portfolio before a small dip becomes a major drop for a strategic solution.

3. Protection - Downside portfolio loss limit application considered using money market funds. Some Provider portfolio investment options do no offer this.

4. Portfolio selection.

5. Portfolio rebalance suggestion then sent directly to client to implement.