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Our Investment Management Approach

By August 13, 2015May 13th, 2020Investing & Market Commentaries, Bench Talk

First Financial Consulting provides 100% objective advice in a lot of different areas. Today, we would like to focus on our Investment Management Approach and what sets us apart from other advisors.

The Essentials Of Our Investment Management Approach

Three distinct components make First Financial Consulting different from the other financial advisors. To provide our clients with the best service possible, we believe that our approach to investment management must include objectivity, predictability, and accountability.

Objectivity

The advice and recommendations you receive must be unbiased and free of any conflict of interest. If you want to trust the recommendation of your investment advisor, you need to have absolute confidence that they’re not selling some product for the sake of a commission. You’re looking for advice and guidance, not for a sales pitch. We at First Financial Consulting provide 100% objective independent financial advice. We are also fiduciaries and are required to act in the most ethical manner possible when it comes to your finances.  This means that we will never sell any stocks, bonds, mutual funds, annuities, or insurance policies to anyone.

Predictability

This may seem straight forward but it’s a little more nuanced. Most advisors don’t talk in terms of predictability and most clients don’t walk in and ask for it. These advisors talk in terms of conservative, moderate, or aggressive. We don’t think this makes a lot of sense. Studies show that these words mean different things to different people. Even more interesting is the fact that these words can mean different things to the same person at different stages of life. So instead, our investment management approach is based on real numbers. The reasonable rates of return that we believe can be achieved. We also want to go beyond that and discuss the risk that comes with those rates of return. Relating that to your financial goals is paramount. We want you to have confidence that by targeting a certain return, you can achieve your goals and dreams.

Accountability

In some ways, this is the most important part. If we lay out certain investment target returns and their associated risk levels, and if we help you choose which one fits your personality and your goals, then we believe we should be held accountable for achieving that target return over a reasonable period of time. Therefore, we measure the performance of your portfolio against the goal. You will know whether we are achieving the goal, falling short, or surpassing it. That’s true accountability.

An Investment Management Approach That Sets Us Apart

Objectivity, predictability, and accountability – all three of the areas that set us apart. We have seen advisors who do one or two of these things but rarely all three. We believe that all three of these are crucial to the proper management of an investment portfolio.

Related Video – Our Approach to Financial Planning

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