Parents with more than one child raise their children with the same set of core values. However, the approach and methods they take to raise each child has to vary by some degree. Sometimes this variation is minor, sometimes completely different. Perhaps when young and naïve, parents might first fall into the trap of I will do exactly what I did with child number one with child number two. That lasts about a day, maybe a week. The parents quickly adapt or face the consequences. They revaluate, lock in their core values, but alter the methods as to most appropriate way to raise child number two. Successful parents want what is best for their children, not what is best for the parents and they adapt accordingly.
Managing portfolios for a wide array of clients is no different. Some context. I have an analytical mind with a strong desire for operational efficiencies. As such there is desire to push all clients into standardized model portfolios. It just makes sense, operationally. However, there is a disconnect. What is ideal operationally at the firm level is not always what is ideal for the individual client. While most firms stop here and force standardization upon all clients, we take the less operationally efficient approach, and customize to each client, Like a parent, we lock in our core values, but alter our methods to what is best suited for the individual client. At Members’ Wealth, we have a strong belief and one of our core philosophies is that there is no one right portfolio for everyone but there is one right portfolio for each individual, family or business. Customization is key to success.
A core value of Members’ Wealth is bringing a customized portfolio to each of our clients. What this means is that each client has a unique portfolio of investments and strategies best suited to their individual needs. We believe the commonly used tactic of assigning a client a strategy based on age and income needs improvement. Nor do we think assigning a client to a portfolio based on a few risk return questions has much merit either. These strategies, while they may work for some, they do not work for everyone. Strategies need to change based on clients’ needs, risk-tolerance, goals, circumstances, and personal preferences. A cookie cutter strategy does not consider these extra variables. We think these same extra variables are what make or break a client’s satisfaction and overall success in achieving their goals. Wealth managers cannot meet the expectations of the client if they do not know what these extra circumstances and personal preferences are. Through strong relationships with clients and a continual reevaluation process, we believe Members’ Wealth can truly understand the needs of the client and work with the client to build a plan to help meet those goals. Rather than fitting clients into a portfolio, customization allows us to fit the portfolio to the client.
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Advisory services are offered through CS Planning Corp., an SEC registered investment advisor.