Customization of Your Accounts

True customization of a client’s investment accounts is often promised but seldom delivered by the big investment advisory firms, banks and brokers.  Typically, a big firm will have five or six basic investment models that they use, ranging from 100% bonds to 100% stocks, with typical mixes in between of 65% bonds/35% stocks, 50% bonds/50% stocks, and 35% bonds/65% stocks.  After the mix between stocks and bonds is established, a big firm will normally have model portfolios in which they invest your money.  For example, one big trust department in Cincinnati runs a 30 stock model, a 50 stock model and a 100 stock model.  If you want something different, you can’t get it.

 In contrast, Labrador Investments first reviews your investment requirements along the following dimensions:

  •  Return Requirements: For example, if you are retired and depending on the portfolio to meet your lifestyle needs, a good question to ask is: “How much must the portfolio earn to allow you a comfortable income?”
  •  Risk Tolerance: For any investor, a good question to ask is: “How much money am I willing to lose before I can’t sleep at night?
  •  Taxes: Is the portfolio subject to tax, or is the account a tax-advantaged Individual Retirement Account (IRA)?  This can affect the types of bonds purchased in your account.
  •  Time Horizon: Are you investing just for yourself, or are you planning to leave assets to your heirs?
  •  Liquidity Needs: How much money must the investors set aside for emergencies, upcoming large purchases (new home, new car, boat, major repairs on a home, medical expenses?
  •  Legal Issues:  Is this a trust subject to legal limits on the investment options?  Is this an IRA portfolio where the client is over the age of 70 ½ and subject to Minimum Required Distributions?
  •  Other Unique Needs and Circumstances:  The specifics of this dimension can vary widely, and is only limited by a client’s imagination.  For example:
    • Some clients have special needs children who have above-average medical expenses. 
    • Some clients may have college funding may be a primary goal.
    • Some clients desire to avoid investing in so-called “sin” stocks such as companies that sell tobacco and liquor. 
    • Some clients worry about having enough money to provide for in-home nursing care or funding nursing home expenses.
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