Prospect Financial Group LLC takes a disciplined, step-by-step approach to investment management and financial planning. We help clients with the entire process from developing financial goals to the last execution detail.
Step 1: Getting to Know You
The process begins with an initial meeting to get to know your current financial situation and goals: where you are, where you want to be, the resources available to you, and your tolerance for risk. You will be asked to complete a data questionnaire and bring several documents to the initial meeting, such as investment statements, tax returns, pay stubs, insurance policies, estate documents, and brochures on employer-sponsored benefits.
Step 2: Developing a Plan
For each of your financial goals, we develop a customized Investment Policy Statement (IPS), which serves as an overarching plan for managing your investment portfolio. The purpose is to ensure that we are all on the same page as far as where you are, where you want to go, and how you will get there. Further, the IPS clearly outlines how investments will be selected, how your portfolio will be rebalanced, and how your performance will be monitored on an ongoing basis. In this way, the IPS serves as both the blueprint for your investment portfolio and the yardstick against which it will be measured.
At this step in the process, we often simultaneously develop a comprehensive written Financial Plan to align your Investment Policy Statement with your financial goals. The plan analyzes the likelihood that your investments will achieve your goals and identifies the steps required to improve their likelihood for success.
Step 3: Prioritizing and Agreeing on the Plan
Together, we review an Investment Policy Statement and Financial Plan, which outline many different ways for you to achieve your goals. At this step, we work with you to prioritize all of your cash requirements and help you select the level of investment risk that not only suits your risk tolerance but also gives you the best chances of achieving your priority goals. Once we have settled upon priorities and the target risk profile, we update your Investment Policy Statement and Financial Plan as appropriate.
Step 4: Executing the Plan
An Investment Policy Statement and Financial Plan must be executed well in order to succeed. We help you implement all aspects of the plan from opening accounts, transferring assets, and placing trades to working closely with your other financial advisors, such as insurance brokers, mortgage lenders, accountants, tax advisors and trust and estate attorneys. Although we may provide referrals, we will work with any providers or professionals you choose and have adopted technology that allows us to manage assets at almost any custodian. Click here to learn more about our Implementation Support services.
Step 5: Monitoring the Plan
Each quarter we provide you with a comprehensive report that aggregates information across all of your accounts and tracks the performance, risk, and composition of your investments against an appropriate benchmark. To the extent necessary, we provide recommendations for re-balancing your portfolio and selling under-performing investments. As we monitor your investments, we also review your progress against other aspects of your Financial Plan, helping you every step of the way.
Step 6: Updating the Plan
We recommend that you review your Investment Policy Statement and Financial Plan regularly to ensure that they remain consistent with your goals and financial situation as they evolve over time. We update your Investment Policy Statement and Financial Plan with every significant life change, such as a change in employment, the birth of a child, or an untimely death.