The approach taken with our client partners involves a number of stages that I refer to as the “Five Fundamentals” which are essential to a successful long term wealth planning partnership.
The Five Fundamentals take the client from an initial discovery meeting where we get to know each other and the task at hand, to development and implementation of a comprehensive wealth plan and ultimately to monitoring and reviewing of the progress toward the client’s goals.
The individual stages of the Five Fundamentals are as follows:
1. Understand
An initial meeting is scheduled to explore each other and our fit while also looking to identify the goals and aspirations of the investor. It can be summarized as follows. Where is the investor currently, where would they like to go, and can we get there together?
This meeting is focused on information collection and exploring of needs only, it is still too early for suggested solutions at this time.
2. Plan
The information collected from the first meeting is then utilized to develop a proposed solution, or solutions, for the prospective client. A proprietary wealth planning software program, myGPS, is leveraged along with many other RBC support services to identify opportunities and set the stage to develop a comprehensive wealth plan.
3. Build
At this time a complete and comprehensive wealth plan is developed for presentation at a second meeting. Many RBC specialists may have also be called upon to contribute from a number of perspectives including: tax planning, estate planning, insurance, and banking services.
The investment component of the wealth plan arises from extensive analysis and research and utilizes strategic asset allocation to arrive at a customized portfolio of individual securities, managed solutions, and exchange traded funds (ETFs).
The expansive investment team at RBC provides many support services available to Edward when developing the investment plan. These team members include a large network of professionals – economists, wealth management specialists, and analysts. Expert resources from outside RBC are also available and ensure un-biased delivery of the best in class investment solutions.
4. Monitor
Once the investment plan is in place, there will be on-going monitoring to ensure the client’s portfolio mix is adhered to and they remain on track to their stated objectives. Periodic rebalancing may occur if their asset allocation strays from their stated risk profile due to market related events or general economic influences.
The portfolio mix may also be adjusted if major life events occur which alter the clients risk tolerance or needs for liquidity.
The key goal of monitoring is to ensure the both the client, and myself, are aware of where we are in reaching the clients stated objectives.
5. Review
A key part of my client commitment are regular updates and reviews of the client’s current situation versus stated goals. This can take the form of a mandatory annual review each year or also timely updates during market turbulence or challenging economic periods.
Having experienced a number of challenging times such as the Financial Meltdown in 2008/2009, the technology pull back in 2000, and devaluations of various global currencies over the past 2+ decades I understand the need for information and guidance during challenging times.
The outcome of the review meeting can be to maintain the current course of consider modifications to the wealth plan.
Contact us directly for a thoughtful review of your current household wealth situation.
