The CWMG Investment Management Process
Our investment process is predicated upon helping our clients to manage to their own unique Family Index. The Family Index is the average annual return that the family needs on their investments in order to help make sure that they can spend what they want in retirement and not run out of money. We utilize a dynamic financial modeling program, working backwards from their goals, objectives, and timelines to determine their personal index.
We are not attempting to earn the highest return possible. We are trying to make sure that we are protecting their future. We recommend and implement investment strategies that look out for our client’s best interests, protecting from the down-side and taking advantage of gains when we can. We do not attempt to time the market. We seek to identify long-term trends and adjust portfolios accordingly.
For potential clients we start by performing a stress test on their current portfolio to see how vulnerable it may be to seven different potential economic scenarios. We compare the results to their personal “risk budget” and make some general recommendations.
If we find that we have a fit for a long-term relationship together we complete a wealth plan, determine the Family Index, and implement the appropriate investment strategy.
We employ a variety of investment vehicles including institutionally managed mutual funds, ETF’s, variable annuities, insurance products and other vehicles that help us to manage financial risk and protect against the down-side.
On a periodic basis we update the wealth plan and adjust the Family Index if necessary and rebalance the portfolio if so indicated based on asset and sector classes believed to be in an uptrend.