INVESTMENT OBJECTIVES & PLANNING
The first step we take with you is to thoroughly understand your personal situation, financial position, and aspirations. Equally important, we want to understand the role your financial assets are expected to play in reaching your short- and long-term needs.
Your investment objectives are defined in a Statement of Portfolio Objectives and Considerations (POC). SKY creates this POC to document our discussions and to formalize the guidelines with which to manage your accounts.
Key components of the Portfolio Objectives and Considerations include:
- Portfolio strategy and return objectives
- Any risk constraints you may wish to impose
- Income and liquidity needs of your portfolio
- Constraints on portfolio design
- Unusual legal or tax issues you may want to consider
- Asset allocation constraints
- Investment time horizon
When faced with a life event requiring a substantial commitment of capital, wise investment planning can provide significant peace of mind. At SKY, we work with you to design an effective investment plan and then implement portfolio management strategies to help you confidently move towards your goal.
We view investment planning somewhat differently than other firms:
- We believe a simple plan is more effective than a complex one. Most investment plans are more complex than they need to be. It is crucial that you understand your situation and the steps you should take to reach your goals successfully.
- We integrate planning and investment management. Well-articulated objectives will drive the portfolio management process. We understand both and integrate the two.
- Most planning horizons are too long. Plans with 20 or 30 year projections are unrealistic because too much can change. We focus on the next 10 years of your life and work with you to get you where you want to be.
- Some plans require complex solutions. If your situation has difficult planning issues, we help you consult with experts. Ultimately, this is most cost effective. Our planning process is not a tool to sell you prepackaged investment products. Your plan is a key part of the portfolio management process. As your plan evolves, so will your portfolio.
- We monitor and review your goals regularly. During your periodic account review, we continue the process that integrates planning with portfolio management to enhance results and provide peace of mind.