HOME ADVISORY BROKERAGE OUR PEOPLE LOGIN THE VALUE OF AN ADVISOR Research by numerous industry leaders concluded that the value added by the services and advice of an advisor is approximately 1.5 – 3.0% of an investor’s assets per year, after taxes and fees The value added by an advisor averages out over time. Benefits may come quickly and radically during market upswings or downswings, or could come slowly as the relationship develops KEYS AREAS OF VALUE ADDED BY AN ADVISOR Portfolio Construction Periodic Rebalancing Tax Efficiency / Loss Harvesting Financial Modeling and Projections Behavioral Coaching - being a sound voice during emotional times Time saved from managing your own portfolio to allow you to do what you do best A trusted, knowledgeable and experienced advisor is an integral part of a well-crafted financial portfolio designed to achieve your goals OUR PROCESS Communication and Understanding We view the discussions with our clients to be the most important input to the advice we provide. Understanding your financial picture and goals for your investments is the first step we take in our process We focus on your top-of-mind concerns, and maybe explore a few you have not considered. Let’s answer “Are we headed in the right direction?” Alignment and Transparency We act as a fiduciary, meaning our recommendations must be in the best interests of our client and our client’s interests take precedence over ours We do not charge commissions on trades in Advisory accounts. Our compensation is via a monthly fee, based on your assets under our management. We are aligned with our client's interests - our compensation increases as your assets grow FINANCIAL MODELING AND PLANNING We can develop the financial framework you need to make well-informed life decisions We create a comprehensive model of your financial situation Leverage industry-leading financial planning software to optimize the decision process Project income and expenses, incorporating savings for education, retirement, and any other goals Overlay current investments and allocations, and evaluate our recommendations Examine Trade-offs – How current and near term decisions impact your future goals Examine Scenarios – How unforeseen events affect our projections, both near and long term Once the framework is built, we will examine it periodically together and adjust as necessary Answer the important questions: “When does work become optional?” or “When can I pivot in my career without sacrificing my goals?” Source: eMoney PORTFOLIO CONSTRUCTION COLLABORATION SEGMENTS THEMES PURPOSE In the expected “low-yield for longer” post-COVID world, the traditional approaches to asset allocation have become challenged Bonds no longer provide enough yield to justify their high allocations and now contain significant interest rate risk We construct portfolios with evolving allocations across these four key areas to align our clients’ return requirements and risk profile, while optimizing for tax and time horizon considerations GROWTH Large Cap Growth, Small Cap Growth, Global Technology, Emerging Markets Artificial Intelligence, Internet of Things, Cloud-based Computing, 5G, Health Tech Developing consumer-based economies Serves as the growth engine to increase value over the long term despite short term volatility QUALITY Large Cap Quality, Developed Markets, Real Estate Dividend growth, inflation protection, reduced volatility Industry leaders in a mature but growing stage “Core” of the equity portfolio Dividends are a large portion of equity returns with growing cash flow for future years INCOME High Dividend Large Cap, Preferred Equity, High Yield, Multisector, International Bonds Mature companies with strong balance sheets, where dividend yields may exceed bond yields Diversity across higher yielding fixed income spectrum Current income through a blend of higher yielding contractual income with stable equity dividends PRESERVATION U.S. Treasuries, Municipal Bonds, High Grade Corporate Bonds, Cash Stable, contractual income Reduced correlation to equity volatility Preservation of capital for emergency cash needs, income replacement or reallocation during broader market downturns PORTFOLIO MONITORING AND REBALANCING Portfolio monitoring and periodic rebalancing are vital to long term performance. We have a methodical approach to ensure your investments are managed in a disciplined manner Our strategic allocation recommendations reflect our long term views and target your goals. We make tactical adjustments to allocations periodically based on changes in the market, economy and policy We recommend a client-specific strategic allocation and maintain a tolerance band for each asset class Allows investments to maintain momentum but ensures positions do not become misaligned Supports trimming an allocation when valuation may be overextended and reallocating to positions temporarily out of favor Our best-in-class portfolio management technology allows us to monitor portfolios on a daily basis for compliance within those tolerance bands Rebalancing may occur more frequently during periods of market volatility, or may not occur for extended periods if within the tolerance band, minimizing transaction costs No arbitrary annual or quarterly rebalancing that ignores market conditions Formal client reviews assess strategic allocations and congruence with financial goals COLLABORATION LexInvest Wealth Advisors | 2365 Harrodsburg Road, Suite B100 Lexington, KY 40504 | www.lexinvest.com | (859) 479 - 3160 Securities and investment advisory offered through Sunbelt Securities, Inc. | Member of FINRA, SEC, MSRB and SIPC Above is intended for informational purposes only, it is not a solicitation to sell/offer or to buy, is obtained from sources believed to be reliable, and accuracy and completeness is not guaranteed. Sunbelt Securities, Inc. is not responsible for the marketability/price performance of any mentioned securities. Opinions expressed are the author's and subject to change without notice. Prices and availability are subject to change. Sunbelt Securities, Inc. does not provide tax or legal advice. Please consult your tax or legal professional for such services. Please call 713-965-9510 with any questions.