STRATEGIC ASSET ALLOCATION MANAGEMENT
PLAN SERVICES & INTEGRATED STRATEGIES

If there is one thing I’ve learned in my years as an executive financial advisor, it’s that no two clients’ financial situations are the same. Especially when it comes to how assets are allocated within your financial portfolio, there is no one-size-fits-all solution.

Your asset allocation strategy must be part of a fully integrated financial plan that addresses not only your current situation, but also your plans and goals for the future. That’s why, when you work with the Carpenter Team, we start by getting a full picture of the factors that will drive your strategy now and in the years to come. Once we’ve laid that foundation, we can create a plan that suits your unique needs.

There is a starting point for every process. For the advisors on the Carpenter Team, the strategic asset allocation management process starts with examining five factors that drive your fully integrated investment strategy.

• Risk tolerance: Are you a risk-taker or a conservative investor? Are you concerned with long-term growth or immediate returns? These are the types of questions that need answering before we make any investment decisions. To do this, we use a 20-question quantitative questionnaire to give us an idea of how much risk you are truly willing and able to take. From there, we can devise a comprehensive, customized strategy that you feel comfortable with and confident in.
• Age and time frame: To develop a sound integrated strategy, it is best to know how and when you will need to access your money. Are you 30 years away from retirement or three? Knowing this allows us to ensure you’re not taking unwanted risks too close to retirement.
• Intent: When allocating assets, we help our clients identify “buckets” of money earmarked for certain needs, then develop a strategy around them. For example, you may have a bucket you will use for retirement in 30 years. You can likely take more risk over longer periods with that bucket than you can with one intended to fund a child’s college education in two years.
• Income need: Is there a need for income generation in your portfolio, perhaps due to retirement or to pursue a new business venture? We can help you strategically identify which assets in your portfolio should be used for that purpose and which should be left to grow untouched.
• Capital retention vs. capital liquidation: Do you want to live on interest and earnings from your portfolio, retaining more of your capital to pass on to heirs? Or would you prefer to liquidate some of your investment holdings to generate more retirement income? While there is no right or wrong answer, your stance on the matter affects your strategic asset allocation management plan. My team helps you determine what you are most comfortable with and then designs and executes a plan that addresses that preference.

Once we have helped you answer some basic questions and ascertained enough information to develop a strategic asset allocation management plan, we begin to put pen to paper.

While we have a standard process and utilize model portfolios as guidelines, every single client’s portfolio looks different once you look inside. In developing your plan, we work with the assets you have to begin with and then help you customize your investment strategy from there.

In certain situations, it is not advantageous for you to sell off certain equity or stock holdings for multiple reasons, including taxation. In other situations, it could be an optimal time to exercise and sell employee stock options to better reflect your newfound asset allocation management plan. My team specializes in helping top-level executives manage concentrated stock as part of their overall asset allocation strategy.

The Carpenter Team believes in comprehensive planning for our clients, which means we take a big-picture approach to your financial plan, including asset allocation. What do all of the factors above—your risk tolerance, age, income need, and more—mean for your portfolio now and in the future? By understanding your preferences, your needs, your goals—by understanding you—we work together to develop a customized asset allocation management plan and integrated investment strategies that will serve you now and for years to come.