Discovery & Precise Goal Definition
How can we guide you without knowing you or what you're truly trying to accomplish? Unfortunately, all too many advisors begin talking investments before really getting to know the who, what, when, where, and why of you! We don't need to stoke our egos nor do we love to hear the sound of our own voice. We bring our ears to the table and listen intently to you. Through this process clear goals will be defined and committed to in writing. We develop a written and personalized Investment Policy Statement (IPS) which becomes the blueprint for managing your portfolio.
Portfolio Construction & Model Selection
Graf Financial Advisors employs several general asset allocation models designed to be adaptable to any particular client scenario. The models provide a framework within which we recommend specific securities and investment vehicles to fill in the details of the portfolio. We will work with your existing investments whenever we reasonably can and always consider income tax considerations in our recommendations.
Each portfolio is constructed to meet your specific considerations; whether you require a steady stream of income in retirement, growth of your assets to combat inflation and meet future expenses, or some blend thereof. As part of your IPS you will receive a comparison of your current portfolio to the recommended asset allocation model.
If your goals or circumstances change we would modify your IPS and if appropriate, your portfolio model. We realize that you may have assets at multiple institutions, so it is important for us to have an understanding of how those assets are invested so we can integrate our guidance with your total portfolio.
Portfolio Implementation
Based on the structured allocation model that optimally suits your investment goal, we begin deploying your assets within each of the specific investment classes. Unlike many firms that employ boilerplate solutions, we will never dump your entire portfolio into the markets on some arbitrary day nor will we completely dismantle all existing holdings without first evaluating them for investment quality and income tax implications.
The pace and approach to our implementation carefully considers our macro-view of the economy using a top-down approach. We also believe that the best strategies are useless if you are uncomfortable with them. If you are uncomfortable, we are not properly doing our job. We want you to understand the rationale and selection of all proposed investments. We emphasize communication and disclosure to accomplish this and to bring investing from theory to reality.
Monitoring: Strategic & Tactical Asset Allocation
One of our core principles in constructing a portfolio that performs well over the long-term is based on Strategic Asset Allocation. We divide up your portfolio among major asset classes (equities, bonds, cash equivalents, and alternative investments) in proportions that are consistent with your long-term financial goals, risk tolerance, and objectives. This blend of asset classes is determined by the expected rates of return and risk for each asset class, as well as the manner in which the performance of the asset classes tend to interact over time.
Clear & Consistent Communication:
We view each and every client as an individual and therefore you are treated like one. Some investors simply want the bottom line and others take a keen interest in following the markets and our client communications are tailored to reflect your preferences.