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Foresight Financial Planning provides fee-only investment advice based on Nobel-prize winning principles that have been used successfully by the largest institutional investors for decades.

As investment managers, providing discipline is our single most important value.  Discipline means that a structured methodology is used for long-term investing and that plans are not abandoned when markets are volatile or one segment outperforms another. The steps that follow create our discipline.

Financial Review And Investment Plan

We begin with a review of your current holdings to identify the strengths and weaknesses of your financial situation.  In a written investment plan, we outline your long term goals and an investment strategy that we believe is best suited to achieve your objectives.  Personalization is based on many factors, including a client's short- and long-term financial objectives, current assets and liabilities, cash flow, time frames, need for return, tax ramifications, and tolerance for risk.  We identify issues that we believe need immediate attention and develop a mutually agreed upon course of action. 

Asset Allocation Strategy

Asset allocation refers to the process of determining how much of your portfolio will be invested in different types of investments or market segments.  The asset allocation decision has been shown to be the single most important determinant of portfolio returns.  We calibrate your exposure to various asset classes and develop a custom portfolio mix across the dimensions of market size, value, and geography.  We look for attractive investment returns at low cost with controlled risk.  Using primarily no load mutual funds, client portfolios are generally constructed from these building blocks or asset classes:

  • Cash and money market investments

  • Treasury, corporate, and municipal bonds

  • U.S. large company stocks

  • U.S. small company stocks

  • Real estate securities

  • International large company stocks

  • International small company stocks

  • Emerging market stocks

Portfolio Transition

Once you have approved the investment plan and asset allocation strategy, we begin to transition your portfolio for professional management.  Our goal is to make that transition as smooth as possible by organizing your paperwork, following up with custodians who hold your current accounts, and keeping you apprised of our progress.

Investment Selection

When transfers into your new account are complete, we  reallocate your holdings into a broadly diversified portfolio appropriate to your financial goals.  We populate desired asset classes with complementary securities. Cash is normally invested cautiously and steadily to average into positions through market peaks and valleys.

Monitoring

We continuously monitor your investments according to the investment strategy you approved.  As part of that process, we may buy and sell securities to increase the likelihood that performance tracks to your goals.  You retain full access to your account at all times.

Reporting

Monthly account statements are provided by a nationally recognized discount brokerage firm that holds your account.  We encourage at least semi-annual face-to-face meetings to review your investment program and overall financial health.  We may also send you ad hoc correspondence explaining why we have chosen to buy or sell certain positions.

Rebalancing

Over time, your portfolio's weighting in different equity and fixed income positions will naturally drift away from its targets.  Additionally, your mix may need to be adjusted to address changes in life circumstances, goals, and aspirations.  Our ongoing analysis continuously reviews, and if necessary, rebalances positions to keep your investment plan on track.

"Asset allocation is like life insurance. You don't see the value of it until you need it."
Roger Gibson, CFA