Fundamental assumptions about how you configure your wealth underpin your opportunities and risks.

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Investors often think separately about their investment portfolios and the rest of their financial situation. As a result, financial advisors often consider portfolios in isolation and end up making investment decisions that ignore critical factors.

We make it a priority to understand your investment portfolio within the larger context of your total wealth, including:

  • Personal holdings eg homes, real estate investments, precious collections, yachts, cash.
  • Business and opportunistic investments eg stock or stock options in a company you once worked for, investments in a family-owned business or entrepreneurial venture.
  • Liabilities eg long-term collateralized debt, short-term borrowing for major purchases.

Seemingly unrelated factors can interact with each other in significant ways. For example, if you own stock in a major commodities company, we need to factor that into the decisions we make about your portfolio. We don’t want you to end up over-weighted in commodities, exposing you to unintended risk.

Or, in another example, say that much of your wealth is tied up in real estate. That plays into our thinking about cash flow and liquidity. It may suggest opportunities for leverage or credit.

We need to understand your total wealth picture – your balance sheet and income statement– so that when it comes time to make investment decisions, we are mindful of all the potential interactions that may occur and can agree on the proper alignment of assets across your pools of wealth.