Understanding the Industry:
- Investment Management / Asset Management Firms: This service goes by many names, but as their name implies, these companies purpose is to manage investment portfolios. These companies are the big Wall Street names you are familiar with.
- Financial Planning Firms: History has shown that most investors (as well as professionals) fail to outperform the stock market index. As a result, most advisors must specialize in offering financial planning services (retirement planning & insurance). Any client investments are typically outsourced to an investment firms or to the parent companies investment division.
- Wealth Management Firms: Traditionally, these companies only served the wealthiest of retail clients and individuals who demanded a greater level of service. Wealth Management companies need to excel at both investment portfolio management & financial planning.
Hempel Wealth Management Process
Hempel Wealth Management advisors hold themselves to a higher ethical standard. They only operate as fiduciaries and they pursue obtaining rigorous credentials including Chartered Financial Analyst and Certified Financial Planner designations.
1. Client Objective & Initial Portfolio Analysis
Initial meetings are designed to obtain a high level understanding of a client’s objectives and mindset. Clients will complete an investor risk tolerance questionnaire by using leading scientific theory to objectively pinpoint an investor’s risk preferences.
2. Financial Planning & Portfolio Re-alignment
During this step, we illustrate the bigger picture. We help clients further establish objectives as well as put together a comprehensive inventory of financial resources. This allows them to better understand their complete financial picture. Inclusively, we ask the question: does your risk tolerance jibe with how you are currently invested? We then construct a risk assessment of all financial assets so that we can adjust your investments so that they are aligned to your goals and objectives.
3. On-Going Quantitative Investment Management
We continue to monitor and adjust your portfolio based on market opportunities and risks identified in our quantitative investment engine.