The Importance of Planning
Clients come to us with a
variety of financial questions and concerns: How much will I need
when I retire and am I on the right track to get there? How much
life insurance should I have? What estate documents are appropriate
for my situation? I want to retire but will stock market volatility
prevent me from doing so? What are the best retirement pension
elections for my situation?
We know that not every
client who comes to us has the same goals and needs. At Keatley
Wealth Management, we won’t offer you a one-size-fits-all solution.
Rather we will work with you to develop a comprehensive plan as
unique as you are, whether you are looking to
retire, plan for college, or invest an inheritance.
An extremely important
part of our financial planning process is our scenario testing. If
you are retired or considering retirement, we will crunch the numbers
to see how your retirement resources will hold up under a variety of
worst-case scenarios. If the projected results under the worst-case
assumptions fall short, we can work with you to devise strategies for
success even in difficult economic times.
We begin the investment
management process by working with you to create your individualized
Investment Policy Statement. This document is the foundation of our
investment management relationship: it establishes clear objectives,
defines your asset allocation policy (what types of investments and
how they are best allocated) and identifies your goals and
constraints with respect to the timing and amounts of withdrawals,
taxes and other considerations.
The most important reason
for developing an Investment Policy Statement is to articulate your
tolerance for investment risk in the context of your overall
situation. We discuss the risks associated with different types of
assets and ensure that you have a clear understanding of the
potential impact that volatility and investment risk can have on your
portfolio. Based upon your unique risk tolerance and life
circumstances, we establish and document the appropriate investment
parameters that will define your asset mix.
repeatedly confirms that to minimize investment risk and provide the
most consistent returns, investors should have low cost,
well-diversified investment portfolios. We
utilize buy-and-hold strategies that provide clients with low cost,
tax-efficient, broadly-diversified global investment portfolios. We
take the emotion out of investing and we maintain our clients'
strategic asset allocations through disciplined rebalancing in times
of market fluctuation. And we use tax-loss harvesting strategies,
when appropriate, to enable you to keep more of your money.
When it comes to investment strategy, we avoid
speculation and we certainly do not chase the latest fads in the
financial markets. We also understand that it is impossible to know
the future and that diversification is the only reliable antidote to
Once the Investment Policy
Statement has been agreed upon, we oversee the establishment of new
accounts and related asset transfers. Keatley Wealth Management does
not take possession of any client assets. New accounts are
established at a nationally-recognized investment company that acts
as custodian for our client accounts.
Because we are an independent fee-only firm, Keatley Wealth Management is able to consider a wide range of available investment vehicles and make selections based on what is best for our clients. Furthermore, we offer access to low-cost institutional mutual funds that are available exclusively through fee-only advisors. We favor mutual funds and exchange traded funds that provide consistent asset class exposure, low operating expenses and a high degree of tax efficiency. Minimizing expenses and taxes helps you keep more of your investment returns. Over time, these savings compound and the gains can be significant.
Ongoing Monitoring and Rebalancing
Evidence suggests that
disciplined, periodic rebalancing can add up to 1% or more to a
portfolio's annual expected return. As time passes, investment
portfolios drift from their initial asset allocations, changing their
risk and return characteristics. We monitor our clients' investment
portfolios and rebalance when necessary to keep the asset allocations
within the desired limits.
We measure investment
performance against commercial market indices. It is also important
to use your goals as a yardstick to measure how your investment
portfolio is working for you. If you are retired, are you living
comfortably? If you are still working, are you on track for the
retirement you want? Do you feel in control of your finances? Can
you sleep at night in times of market volatility?
We provide you with
quarterly reports that are informative and easy to read. We
calculate quarterly investment performance, net of our advisory fee,
so you can see how your accounts are doing. Beyond the numbers, we
want to keep the conversation going. We get together as often as
needed to talk about how things are going, discuss any new financial
concerns and revisit your Investment Policy Statement. Keatley Wealth
Management is your long-term partner in helping you achieve your
Initial and ongoing
financial planning services are included in the fee our clients pay
to receive ongoing investment management. Investment management fees
are deducted from client accounts quarterly.
investment management/financial planning fee is:
1.00% on the first $1 million
.75% for the next $2 million
.50% on amounts over $3 million
Our minimum annual fee is $7,500.
Because we do not charge separately for financial planning services, we are unable to accommodate individuals who wish to have stand-alone planning services charged on an hourly or by project basis.