Home » Designations » 5 Step Investment Process

Five Step Investment Process

1 – Analyze the Current PositionThis is done as part of the Financial Plan and then with one or more subsequent implementation meeting(s).

2 – Design an Optimal Portfolio Using Strategic Asset AllocationBased on Modern Portfolio Theory (the only investment strategy to win a Nobel Prize), an optimal and efficient portfolio, based on proper asset class allocations and periodic rebalancing, is developed.

 3 – Formalize the Investment PolicyA formal Investment Policy Statement (IPS) is developed, along with the Asset Allocation model, which outlines the process upon which investment decisions will be made.

 4 – Implement the Investment PolicyHere, professional money managers are retained to manage the investments according to the IPS, protecting both the client and the advisor.

5 – Monitor and Supervise the Money Manager(s)This is the ongoing process of making sure the manager(s) are not only delivering the desired investment performance (commensurate with market conditions), but maintaining an acceptable level of risk exposure, consistent with the IPS.