Risk Management

Our objective is to advise and recommend protection against excessive risk-taking in investments, health, disability, death, casualty at home and on the road, and personal injury.

Investment Risk Management

To minimize risk in investing, clients are tested for risk tolerance and an investment policy statement created customized for each client situation. Investment funds are allocated among asset classes that are not closely correlated to each other. Mutual funds are selected that are value-oriented and have outperformed their benchmark. To further reduce risk, attempts are made to intelligently time entry points into investments through timing services, technical indicators, and charting.

Efficient Frontier

Portfolios are said to be efficient when they offer the highest rate of return for a given level of risk. Sophisticated Efficient Frontier software is utilized to find the right mix of investments, given a certain risk profile of the client, to maximize returns at the given level of risk. So few financial advisors use this technique, that we have had a creative logo custom designed to depict our mission of persistent pursuit of added value, one method of which is through intelligent use of the efficient frontier concept developed by Dr. Henry Markowitz , the father of the Modern Portfolio Theory of investment management.

Death Risk Management

To minimize the possibility of clients dying without liquid assets sufficient to pay federal and state estate taxes, college expenses, unpaid debts, retirement funds, funeral and burial expenses, last illness expenses, legal and accounting fees, and current support of the family survivors, the value of net estate assets are monitored for exposure which can and should be covered by life insurance.

To minimize a loss through death of a key employee, a review of business techniques for reducing exposure and key man life insurance protection should be done periodically.

Personal Injury Risk Management

To minimize the possibility of clients being sued for injury to others, the amount of liability and umbrella insurance is reviewed periodically.

Long-Term Care Risk Management

To minimize the possibility of the potential for clients to become nursing-home patients, losing much if not all of their life savings, and imperiling the lifestyle of the healthy spouse, the need for certain amounts of long-term care insurance is reviewed periodically.

Health Care Risk Management

We emphasize to clients that they become very familiar with all provisions of health insurance contracts, HMO limitations, and tax effective ways of paying for coverage.

Disability Income Risk Management

Disability policies are not always simple to analyze and even though workers tend to be underinsured or not insured at all, disability is three times more likely to occur then premature death, and to be as costly, if not more so. We emphasize these facts to clients.