THE
COMPREHENSIVE PORTFOLIO REVIEW
When we meet
a qualified individual for the first time, we offer to do
a complete analysis of their current liquid investments
to determine if their holdings are consistent with their
financial goals and guidelines. We call this our Comprehensive
Portfolio Review or CPR.
This analysis is done at no charge. Its purpose is to show
the strengths and weaknesses of the portfolio(s) and what we
would do if retained as manager, because we believe it is unreasonable
to ask a client to commit to an investment program without
a realistic idea of the program’s impact.
We begin the CPR process by asking you to complete our Investment
Questionnaire and to provide the following information:
• Your
most recent brokerage or bank statements listing
all stocks, bonds,
mutual funds and any other
liquid investments.
• For
your taxable portfolios (those issues you own personally
which are not held in a retirement
account, such as an IRA or profit sharing plan), we
would like the cost basis or the amount you or a donor
paid for each issue.
• An
insight into your expectations from your investments:
How much after-tax income do you need from
your investments?
How comfortable are you with market volatility?
What kinds of investments, if any, would you prohibit us from making? |
• Do
you have a major expenditure to make in the next
year, such as a new house, automobile or major
trip?
• How
much do you think you will need to retire comfortably? |
Once we have this information, we will begin our analysis.
It usually takes two weeks after gathering the data before
we can meet with you again to discuss our findings and to make
our recommendations.
At this second meeting we suggest you have your spouse, trusted
friend and/or adviser with you so all of your questions can
be asked and properly answered.
We often describe our initial CPR as an architectural drafting,
a blueprint that may require adjusting as your own understanding
of your needs develops. In our experience, our first meeting
with a potential client merely begins a process of financial
and personal self-examination that may lead to changes in
long term goals – a reassessing of your retirement
plans or your children’s education, for example. Accordingly,
we caution our clients that as your financial vision becomes
clearer or changes, we may have to revise the CPR.
There are many reasons why we go through this effort to produce
our analysis. The main reason is that it allows you to get an
in-depth understanding of your assets and your chances of reaching
your financial goals. After reviewing the analysis you can decide
to continue with your current plan or let Concord or another manager
handle it for you.
Although each CPR is different, we consistently include certain
crucial areas:
1) We review what we have learned about you and
your family, financial goals and guidelines, income
needs, risk tolerances, timelines and concerns. Our
retelling of what you have told us can often prompt
new relevant discussions.
2)
We analyze your asset mix, or what percent of your money
is currently invested in stocks, bonds, mutual funds and
cash reserves to determine if the mix is appropriate given
your age, income needs, etc. This is the single most important
decision an investor must make, and we can help you determine
the right one for you.
3) We review your individual investments to determine
if they are properly diversified, of suitable quality,
and offer enough security and potential to assure your
financial future.
4) After we have shown how you are presently invested,
we will suggest an overall plan, including detailed
recommendations, on how you can achieve your goals. |
Making a decision regarding the management of your investments
is a difficult one. There are many worthy asset managers available
today, each with their own methodology, proof statements and
well-honed interpersonal skills. If you want to make an informed
judgment, compare what they offer to what Concord is willing
to do.
We are willing to spend the time at the beginning of our relationship
to show you how we think your money should be invested and
how our guidance can serve you and your family for a long period
of time.
We have been asked, “How can we afford to produce these
labor intensive CPRs, including at least two face-to-face meetings,
without a guarantee of being compensated?” Our answer
is simple: We believe that if we listen carefully and understand
our prospects’ needs, we can, over time, build their
trust. It’s a formula that has worked time and again
for us over the years.
You’ve spent a lifetime acquiring your assets. We urge
you to take a moment to get a blueprint before you begin designing
an investment strategy for them. Please consult Concord for
a Comprehensive Portfolio Review today.
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