Our Investment Philosophy
An investment philosophy can be a critical component of success.
To that extent, it is important that clients clearly understand my process for managing portfolio investments and risk.
- How does your investment team function and who manages client money? In my almost 30 years’ experience, it has become apparent that no one person has all the answers. Rather, successful investing is an activity of specialists. So we provide clients access to well-regarded traditional and alternative asset class managers, then craft portfolio strategies specific to each client’s life goals and financial challenges.
- What is your asset allocation method and why is it important? Our primary goal is to create an asset mix that will provide a balance between expected risk and return for a long-term horizon. We believe no one has demonstrated an ability to consistently time the markets, so we rarely make asset allocation decisions due to short-term market shifts.
- What is your manager selection process? To help clients work toward their financial goals, we strive to identify top managers in their respective asset classes using a thoughtful due diligence process. We utilize Raymond James and several other respected, independent research groups in these efforts. This approach helps assure our clients that their investments are in the hands of experienced professionals.
- How do you execute that strategy? We employ a combination of actively managed and passive index programs in our portfolio construction process. Active management can contribute to results while indexing can provide clients with diversification and help manage their investment costs over time. Where appropriate and depending on each client’s timeframe, risk tolerance, etc., we may also explore a variety of risk transference strategies.
- How do you benchmark? Rather than benchmark comparison, we focus on outcome-based portfolio construction. Our in-depth planning process establishes a “personal benchmark” that helps track our progress toward each client’s specific goals. We use this primarily and will also track against an industry benchmark as a secondary process.
- How do you monitor and adjust portfolios over time? On a regular basis (monthly, quarterly, semi-annually, etc.) defined by each client relationship, we review our positions, managers and benchmarks to consider what rebalancing to our target weights may be needed. This helps ensure the portfolio continues to address our client needs.
We work collaboratively to develop a plan best suited for each client’s unique needs. This gives a sense of clarity, organization and empowerment over their financial future (see our process here).
Discover how Kauffman Wealth Services’ extraordinarily personalized approach to financial planning and management can help you on the road to a Life Well Lived.
Pasadena:626.795.6874
Santa Barbara:805.969.5444
Toll Free:866.467.8981
Email: contact us here
