Our Approach: 5 Pillars for Financial Success
At CW Wealth Management, we firmly believe that investment decisions should be made keeping a long-term perspective in mind. In doing so, our mission is to allow our clients to achieve their financial goals, hopes and dreams, over the long run. While the markets can exhibit short-term bouts with volatility and price fluctuations, we believe that keeping a long-term perspective in focus will help our clients stay on track during difficult periods in the market.
Our overall approach to deliver value for clients is based on 5 Pillars for Financial Success:
1) Financial Planning: Develop and maintain a strategic roadmap for achieving clients’ long-term goals. This can range from short- and long-term income needs, educational expense needs, estate planning and philanthropy, among many others.
2) Asset Allocation: Develop and implement a risk-adjusted portfolio strategy that meets the needs of individual clients’ financial objectives. This can include the mix of a variety of asset classes including equities, fixed income and cash that can provide clients the highest potential long-term gains at a risk level they are comfortable with.
3) Investment Selection: Create and actively monitor a diversified portfolio of specific investment vehicles customized to be the fit best for each client. Investments vehicles include, but are not limited to, individual stocks and bonds, mutual funds and ETFs (exchange traded funds).
4) Systematic Rebalancing: Monitor and adjust portfolios over time to help potentially reduce risk and increase returns. Simply put, rebalancing adjusts the underlying investment assets back to their target percentages within a portfolio. Rebalancing ensures that clients’ portfolios remain aligned with their financial goals and risk tolerance. This is especially important when some parts of the portfolio vastly under or outperform each other due to market volatility or momentum in certain areas of the markets.
5) Tax Management: Incorporate strategies that allow clients to keep more of what they earn by lowering their overall tax bill. A strategy such as tax-loss harvesting, which can help offset taxable gains (thus lowering potential taxes owed), is an important asset to enhance long-term gains.