Process & Methodology
We view each potential client interview as an information discovery meeting. However, it is about discovering information about the investor, not about their current investments.
In this session, the first step is to identify the investor’s most cherished goals. The second step is to discuss a plan to meet the goals, against which progress may be measured. The third step is to construct a portfolio of investments—whose role is as servant to the plan— that based on historical returns would have enabled goal attainment in the time allotted. Most investors don’t identify portfolio construction as the third step, but rather as the only step. As a result, they end up having a speculation, rather than an investment portfolio, and they are left to make frequent changes in response to current events and the financial media. Once we develop a plan, our main role is to coach our clients so that human nature doesn’t blow the plan up through a long investment lifetime marked by many passing fads and fears. Our investment vehicles are almost exclusively made up of low-cost and tax-efficient index funds.
The goal is to construct a portfolio of investments—whose role is as servant to the plan—that based on historical returns, as against the historic rate of inflation, would have enabled goal attainment in the time allotted.
We begin our relationship, as most advisors do, by listening to and understanding our client's perceptions of wealth and what they would like their assets to help them accomplish over time. It’s imperative to achieve a mutual understanding that our job isn’t to attain “alpha”—the specific performance of an investment relative to "the market"—or to outperform a random benchmark; rather, our job is to develop a plan that offers our clients a high probability of maintaining and even enhancing their standard of living and that of their heirs to whom they eventually hope to leave a legacy.
The agreed upon plan and mutual understanding of how we move forward together is what our clients appreciate most in a relationship. The plan is the medium governing how we relate to each other as advisor and client. The clarity of investment thought and the precision of a long-term plan designed to maintain and potentially increase standards of living, regardless of market conditions and temporary market declines, are hallmarks of the Fusion advisor/client partnership.
Declines are temporary. Increases are permanent.
So what’s the answer?
*Please Note: Limitations. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by Fusion) will be profitable, equal any historical performance level(s), or prove successful.