Our clients are individuals, trusts, foundations and insurance companies. However, as wealth planners, we will treat the clients as we would an individual, following the financial planning process as it applies to that client. For example, with a trust client, we will not simply focus on the investment portfolio. We believe that our client's risk tolerance is a significant constraint in the wealth management process. Our success can be measured by our client's ability to sleep well during the turbulent markets.
Clients have a fuzzy understanding of risk.
Their tolerance for risk is dynamic, changing with markets and personal circumstances. It is our responsibility to be sure, before proceeding with the development of recommendations, that we share with our client the same concept of risk. This can be accomplished by education and appropriate risk tolerance questionnaires. We believe that we must make an effort to continually improve our knowledge of cognitive psychology as it applies to these issues. Tax Constraints We believe that tax considerations must be considered, much like the need for liquidity.