Client understanding and realistic financial planning are at the core of JPWM’s investment philosophy. From the first steps of client engagement, through the investment process, and to ongoing quarterly and annual reviews, JPWM strives to keep clients informed about their portfolio allocation, investment changes, and the markets. In-depth financial planning is offered to all Full-Service Wealth Management clients, determining the shape of their portfolio and allowing them to successfully plan for the future. Read below to learn more about our investment process.
We believe properly determining your risk tolerance requires more than just answering 10 questions. At JPWM, an in-depth determination of risk tolerance is the foundation of our investment process. We apply a statistical analysis that measures how your risk tolerance and risk capacity will influence a suitable Asset Allocation.
Asset allocation is the implementation of an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investor's risk tolerance, goals and investment time frame.
Your Asset Allocation forms part of your Investment Policy Statement (IPS). An IPS is a written strategy and commitment to a disciplined investment plan and asset allocation. We provide every client with an IPS designed to help you reach your investment and financial goals. It is created specifically for you based on your investment objectives, time horizon, risk tolerance and financial situation.
Every Full-Service Wealth Management client¹ is provided with a financial plan. A financial plan is a comprehensive evaluation of your current and future financial state, using currently known variables to predict future cash flows, asset values, and withdrawal plans. It is a roadmap of your financial future and allows you to see your expected portfolio balances, year-in and year-out, through retirement.
We meet with our Full-Service Wealth Management clients every quarter to conduct a portfolio review. The year-end annual visit (conducted in January and February) includes an in-depth review of your financial plan, during which time we make any necessary adjustments based upon life or career changes during the year. Reviewing the financial plan annually, understanding variances, and making changes allows clients to stay on target to meet their financial goals and attain a successful retirement.
¹Full-Service Wealth Management clients receive a Risk Tolerance Assessment, Asset Allocation, Investment Policy Statement, Financial Planning services, and quarterly reviews. Clients invested in low cost ETF strategies receive a Risk Tolerance Assessment, Asset Allocation, and Investment Policy Statement, but do not receive a financial plan and have annual reviews, rather than quarterly reviews.