Growing Your Business
We partner with you to identify and create ways to help you grow your business. From the design of your retirement plan through anticipating potential problems before they become an audit issue, we bring our expertise to team up with you to strengthen your company’s future. Our clients have found our approach innovative and comforting. Here are a few ways our partnership is unique:
We don’t believe that you can possibly understand all the rules and nuances related to your retirement plan. In short, you don’t know what you don’t know. You need an expert set of eyes, viewing your business changes and advising you of unanticipated consequences.
You likely have information overload. We can help you by keeping track of significant dates and requirement changes so you don’t miss something key because it was buried in your 100th email.
We believe that actively managed money gives everyone a better chance at avoiding the impact of major market downturns. We have designed plans that offer a choice of a traditional investment mix or a tactically managed investment account. This is an option that few 401(k) plans even considered prior to 2008.
Tax laws don’t favor owners or key people in your business. We can help you find ways to benefit yourself and those key to your profitability.
Protecting Your Business
Liability is everywhere. Most of our clients are diligent in attempting to do the right thing at the right time. But we all share a fear that there is something we may not be aware of – a new rule that we didn’t know about. While there are always some risks and uncertainties, having a smart team of savvy people looking out for your interests is one way to minimize some of those risks. We focus on helping you manage your risks, whether they are market risks or regulatory risks.
Passing It On
Growing a thriving business is an accomplishment that many businesses strive to reach. We’ve found that once our clients have created that successful business, their focus often moves from success as a destination to the significance of passing the business on to the next generation. This change in vision is both energizing and challenging. Being a multi-generational business ourselves, we understand the complexity that this next step brings and we are uniquely qualified to advise you on creating a legacy that will outlive you.
Creating A Plan – Begin by envisioning your dream. What does it look like? Where are you now? The key is not only developing the path between today’s reality and tomorrow’s vision, but also establishing benchmarks so you actually reach your goal. We can help you chart your course to achieve your dreams.
Protecting Your Most Valuable Asset – If you take your annual income multiplied by your years until retirement, you get a ballpark figure of the value of YOU as an income producing asset. This is likely greater than anything else you own. Protecting this asset is the most important insurance you will ever purchase. We can make sure it is also the best.
Securing Your Family – We believe that most of our financial goals are designed to ensure that our families are safe and protected and that each member has the opportunity to create an independent, fulfilling life for themselves. But there are risks: the risk of dying too young, getting hurt or sick, or having the market crash. Protecting your family means managing the risks. We will help you identify those risks and suggest ways to protect yourself and your loved ones.
Investing For Growth – Wouldn’t it be ideal if our investments only went up and we could save more and more every year. Wonderful, but unrealistic. Growth, whether personal or in our investments, does not happen consistently. While there are times when things go up strongly, there are also times where nothing seems to move or worse, scary times when things pull back. Our job is to help you manage growth; be more aggressive when times are less risky, and more conservative when risk has increased.
Investing With A Strategy
We all are familiar with the need to diversify our portfolios in order to limit risk. It is much like my Mom’s familiar warning, “Don’t put all your eggs in one basket.” In recent years, with global communication instantaneous, the ability to diversify across countries has become easier, but the independent movement of foreign markets has become less. So too, many of us found in 2008 that asset classes which typically move independent of each other, under crises circumstances, can become more correlated in their movements. So, has the theory of diversification changed?
It is Resource 1, Inc’s philosophy that an additional level of diversification can help manage exposure to risk. Managers who have strategies that differ from traditional asset allocation strategies may bring a less correlated piece to the portfolio. Tactical money management is one of those strategies. With tactical money management, there is the belief that there are times when certain asset classes or the market as a whole is too risky for the potential return. It is those times when the tactical money manager would either lower the allocation or eliminate the allocation to that asset class, attempting to limit some of the downside drawdown typically experienced in a buy and hold portfolio. When combined with more passive strategies, active strategies such as tactical management provide an additional level of diversification.
So, how does an individual know if they should be considering an alternative management strategy for their retirement portfolio? There is a critical period of time, often called the ‘red zone’, where large drawdowns in a portfolio can have a devastating impact on a retiree’s plans. This is generally considered to be the 5 years prior to retirement and the early years during retirement. Unless the retirement portfolio is well above the minimum expected to be needed in retirement, it may be key to put additional risk management strategies in place.
Why wouldn’t someone use a tactical strategy for their portfolio? Using an alternative strategy doesn’t in any way guarantee that it will be successful in protecting the downside or capturing the upside. In a steady upward trending market, often tactical strategies deliver less return than the more typical strategic asset allocation strategy. It is in steady downward trending markets that tactical management may help to dampen risk. It really comes down to whether putting risk control strategies into a portfolio makes sense to the investor.
Our job as advisors is to help you determine your ‘capacity’ for risk as well as the more traditional tolerance for risk and time horizon of investing. A person’s capacity for risk addresses much more than their ability to watch their portfolio experience large corrections without staying up all night. A person’s capacity for risk looks at whether they can afford to experience a large loss. Individuals who have a large wealth buffer have a larger ‘capacity’ for risk than those who only have as much as they need, or worse, those who don’t have quite enough. So when you are making decisions regarding your asset allocation strategies, factor in whether additional risk management strategies should be a part of your consideration.
Did you know that some of the very best financial strategies work great in accumulation, but can be very bad in distribution? Most people have spent years learning how to build up their nest egg, but wrongly continue using the same financial strategies. That is where we are truly helpful. We can design portfolios that have safe guards to protect against untimely losses.
Standing between you and your children is a big, powerful tax. There are strategies that can minimize the impact of this tax, but all of them have to be implemented prior to the first person passing away. Too often, people wait until someone is sick to begin planning. Unfortunately, the process takes time and is best done without the emotional strain of an illness. We can provide you with information and options on how to maximize the money that will pass to your children and grandchildren.
Charitable and Family Foundations
Sometimes when we reflect back on our life and our goals, we realize that there is something more we still want to accomplish. Many times that takes the form of providing something of significance. Charitable and Family Foundations can be structured to best utilize tax dollars to help fund areas where you can have an impact. We help you understand the choices and use the ones that most benefit those you are trying to help.