We know that the decision to hire a professional to oversee your investments can be a difficult and important one.  You’ve worked hard for what you have.  It’s important to you.  But you may have reached a point where you’re uncomfortable, unable, or unwilling to manage it, so you want help.  That’s where Todd Washburn Solution’s Wealth Management services come in.  To make an informed decision, though, you need to know the investment philosophy and processes of the advisor.  Here are ours.

We believe money is an important and valuable tool to provide security and opportunity to you and those you care about.  How it is invested is not a decision to take lightly or do by the seat of your pants.  We believe the only way to construct a portfolio is to do a holistic financial planning analysis of the client’s situation.  In our parlance, it’s creating a Life Plan.  That shows us what you need to accumulate, what types of returns you need, and what levels of risk you need to take and are comfortable taking.  The plan provides the benchmark for the portfolio.  We monitor and compare results to what the plan needs, and make adjustments accordingly.

  We have some core beliefs:

• Risk and return are always linked- always.
• The market is, for the most part, efficient
• Trying to beat the market, long-term, is a costly and losing proposition
• The returns sought should align with those needed. Shooting for the moon can lead to sinking to the ocean bottom.
• Investment costs matter.
• Losses can be more devastating financially than not getting the highest return.
• Activity is not itself wisdom.  Sometimes doing nothing is the wisest course of action.

Our process for designing, implementing and monitoring a portfolio is deliberate and careful.  We start by working with you to create a Life Plan- a financial roadmap to the goals you wish to pursue and the financial requirements needed to get there.  We assess your tolerance for risk through risk surveys and conversations with you.  Your capacity for risk- your ability financially to withstand a loss- is also addressed.

We then work with you to create an Investment Policy Statement (IPS).  It’s a document unique to you that spells out the guidelines for your investment portfolio.  This is similar to what endowments and foundations use to bring long-term continuity to their investment process.  Your IPS will address such things as:

• The target rate of return being sought
• The level of acceptable risk
• The target asset allocation
• The parameters for changing or rebalancing the portfolio
• The types of investments to be used, and any to be avoided.

The IPS compels TWS and you to be systematic and disciplined in our decision making.  It helps ward off panic as well as greed.  It provides a record of why and how things were done.  It helps avoid misunderstandings and unpleasant surprises.

Once the IPS is completed and the portfolio assembled, we monitor your progress.  We periodically review and update your Life Plan, comparing the needs to the progress of the portfolio.  If adjustments are warranted, to the portfolio or the Life Plan, we discuss that with you.  We don’t believe in “management by the quarter”- making changes and judging progress quarter by quarter.  This is a longer-term process.  While we aren’t complete “buy and holders”, we don’t believe in chasing returns and the latest hot investment.  Over time we aim to achieve your goals- both in the portfolio and in the Life Plan.  It’s not a sexy process, but we don’t want it to be.  It’s your financial future we’re talking about.  Steady, disciplined, well-thought-out actions are what lead to success.