FAQs
Perhaps the best way to communicate the advantages of working with my investment team is to answer the questions we are most commonly asked:
What is your experience?
I am a Senior Investment Advisor and Certified Financial Planner licensee with over 15 years of experience in the industry. I have built a successful business doing everything possible to protect and grow my clients’ assets through conservative wealth management. Staying at the forefront of industry standards to better service my clientele is a high priority for me. For more about my experience and expertise, please read my bio.
How do you get paid?
With old-style commission brokerage services, you pay a fee every time your broker makes a transaction on your behalf. In contrast, we charge one fee as a percentage of your total assets under management. This way, if your account is growing, we are both making money — the reverse is true as well. We believe this is a fair arrangement as we gain, or lose, together.
How do you measure performance?
Risk Adjustment
We assess all performance on a risk-adjusted basis when evaluating our managers and our total portfolio returns. We use the Sharpe ratio (rate of return to units of risk), which indicates whether a higher return was realized by shrewd investment or by taking higher risk.
When most advisors talk about your “rate of return,” they refer to a certain percentage point, but this does not accurately tell you how well you did in relation to the amount you risked. To clarify: two managers could both have made 15% last year, but without knowing how much risk each manager took, you don’t know if 15% was a good or a poor return.
Net Returns
My team and I always quote performance numbers on a net basis. That means you know exactly what you have made after all costs have been accounted for.
A broker could tell you the stock you bought at $10 is now at $12, so that you are up 20%. You paid 75 cents to buy the stock and 75 cents to sell it. We would inform you that your $10 stock purchase is up 5% net of all costs, which is more accurate than saying it is up 20%.
How do you report?
We measure your plan’s effectiveness and make adjustments as needed.
We believe in keeping our clients informed on their investments. A performance update will be prepared with a frequency and format that matches your needs, with less structured contact in between. Our fee-based program provides quarterly and customized reporting. In addition to the monthly statement that Macquarie Private Wealth generates, a progress report will be provided that includes a balance sheet, profit and loss, and a cash flow summary. A realized gain and loss statement is produced at the end of each year for tax purposes.
We believe these reporting tools will give you the information necessary to make intelligent decisions about your personal and corporate assets. They will allow you to see where you are coming from, where you are now and to forecast where you are going.
How will you help me with my legacy goals?
We create a Wealth Plan for each of our clients that they can use to pass on their wealth to the next generation. The Wealth Plan includes more than just the transfer of money; it also encompasses a client's legacy aspirations. To achieve this, we take the time to meet with each client's immediate family and to understand their values, priorities and wishes. This helps us realize each client's legacy aspirations and ensure that they are communicated and continued through the support of following generations.
What is your investment style?
Unless instructed by a client to take a high level of risk, my investment approach is relatively conservative. Capital preservation is my top priority, and I believe strongly in diversification and careful research. You can be assured that I will manage your portfolio to yield steady returns over the long term with a minimum of loss. My conservative approach to wealth management is focused in two areas:
Asset Mix Management
Successful investing is all about owning a mix of assets likely to generate the returns you need while minimizing your exposure to risk. Using recommendations from Macquarie Private Wealth's award-winning local and global research resources, my team and I work closely with you to determine the appropriate mix. We monitor the situation to ensure it remains appropriate.
Investment Portfolio Strategies
We develop a structured approach to your investment portfolio that includes a thorough examination of your risk profile and an appropriate asset allocation strategy. Where appropriate, we use professional money management through the Macquarie Integrated Managed Account (IMA) program.
