Every new client relationship begins by gathering information about your current financial circumstances, life goals and concerns. We believe the value of any financial plan is greatly enhanced when financial strategies are closely linked with the client’s personal goals and objectives. The financial information needed includes: an inventory of all assets, such as investment accounts, personal property (home, autos, Etc.), real estate, retirement accounts (IRAs, 401(k)s, Etc.) as well as your liabilities: mortgages, home equity loans, auto loans/leases, and credit card debt, Etc. We use this information to clarify how closely the current financial situation is aligned with your most important priorities.
When a client retains Abacus as their financial advisor an advisory agreement is prepared which lists each party’s mutual commitment and responsibilities to the other party for the duration of the financial planning and management engagement. At this time the documents needed to implement this agreement such as: account applications, asset transfer requests, limited powers of attorney, information sharing requests, electronic information delivery agreements, and any other necessary documents will be signed. This allows AWF to begin implementing your financial strategy promptly.
Next we prepare projections of all known sources of current and future income (salary, pension benefits, retirement plans, social security, Etc.) to project expected revenue through the client’s expected lifetime. We add expected living expenses and income tax projections to develop a picture of your future financial options.
At this point we develop a written financial plan after consulting with the client about any recommended adjustments and/or financial strategies designed to increase the likelihood of reaching your goals. The strategies employed typically include: retirement planning, investment management, tax planning, budget and cash flow management, risk management, human capital and education planning, estate and legacy planning, business succession planning, and other strategies which are specific to your circumstances.
The final written plan includes an analysis of the current situation: projections of revenue, income tax, expenses, cash flow analysis, summary illustrations, and recommended financial strategies to accomplish your objectives. An Investment Policy Statement will also be prepared for your review/endorsement. This statement will guide our implementation of your portfolio management.
A wealth management engagement includes AWF acting as your agent to implement the agreed upon features of your financial plan for the duration of the advisory agreement. The investment management services listed below are included as an important part of that implementation. Additional implementation functions we provide as a part of a wealth management engagement may include: coordination of the activities of a client’s other professional agents (attorneys, accountants, etc.) to effectively execute the client’s financial plan, cash and debt management, and expediting the incorporation of all aspects of the ongoing implementation of your financial strategy to produce an optimal outcome for our clients. Although the financial planning and execution process is similar for each client the complexity and level of detail varies because each financial plan/strategy is customized to the individual client’s needs and preferences.