We use a time-tested process to best align client goals with client investment objectives. The process derives from the standard procedures long used by traditional bank trust officers as well as from techniques derived by the latest research in behavioral economics. This combination allows us to offer you the most advanced investment management practices we can. Our seven-step process includes:
- Step One: Determine the Client’s Overall Goal – This includes both corporate and individual goals. Here our experience in trust management becomes most apparent. Designed for our exclusive use, we incorporate a distinctive series of games, worksheets, and templates to help our individual clients identify (and sometimes unearth) their own unique set of goals, objectives, and desires. We call this the Lifetime Dream ProcessSM. On the corporate and retirement plan level, the same process can augment the organization’s existing annual strategic planning process and often uncovers objectives beyond the usual. Whether for private portfolio clients or 401k plan participants, this process reveals the client’s preliminary Goal-Oriented TargetSM.
- Step Two: Is the Preliminary Goal-Oriented TargetSM Realistic and Achievable? – Next, we focus on assessing the appropriateness of the preliminary Goal-Oriented TargetSM. To do this, we’ll analyze the relevant historic information in light of the specific circumstances of the client. By reviewing alternative courses of action, we can begin to define the risk/return guidelines most appropriate for the investment objective needed to increase the client’s chances of attaining their own individual overall goal.
- Step Three: Is the Objective Measurable? – Objectives are meaningless unless they can be measured. We use several different measures, depending on the nature of the objective. Investors can easily measure whether or not they have successfully achieved their short-term financial needs; for example, increasing one’s income. Progress towards long-term goals, however, may be more difficult to measure. Ultimately, we’ll need to link the investment objective to the Goal-Oriented TargetSM and determine the best way to measure progress towards that Goal-Oriented TargetSM.
- Step Four: Finalizing the Investment Objective Statement – The final Investment Objective Statement, together with the client’s completed client questionnaire, addresses the client’s needs and goals. It also describes Carosa Stanton’s “working conditions,” the risk/return guidelines, any security selection restrictions, and how success will be measured. Once the Investment Objective Statement is finalized, we formally incorporate it into the client’s Investment Management Agreement.
- Step Five: Building the Portfolio – Whether an individual portfolio of stocks and bonds or a broad array of mutual funds in a 401k plan, Carosa Stanton structures the investment mix of the client’s portfolio using the risk/return guidelines in the client’s Investment Objective Statement or the plan’s Investment Policy Statement. Our unique focus on downside risk analysis gives our clients something most other investment advisers refuse to provide – a demonstratively successful integration of techniques derived from the latest behavioral economics research into a workable portfolio selection framework.
- Step Six: Regular Periodic Reports – Together with each client, we determine the frequency, nature and content of reports. While we have standard reporting formats, we can and will design custom reports for our clients – ones that answer the client’s questions and look the way they want. We encourage frequent, informal reporting.
- Step Seven: Evaluation – We help ensure our clients maintain the discipline to achieve their goals during times when most investors are so anxious they lose focus and sacrifice long-term needs for short-term comfort. We are committed to providing measurably better service to our clients. We are genuinely concerned about our clients’ satisfaction with our performance, reports, communication, and, in general, with us. We want to know what our clients like about our approach so that we can extend the benefit to all clients. We want clients to feel comfortable referring friends, relatives and business associates to us.
