Comprehensive Wealth Advisory
Most Ryan Financial clients hire us to take on the role of not only managing their investments, but also coordinating the services provided by their other financial and legal professionals. Whether we are working with a CPA to best help our client minimize the tax ramifications of an upcoming sale of a closely held business, or meeting with an attorney to create an estate plan that protects our client’s family from unnecessary taxation or legal risk, our comprehensive wealth advisory service breaks down the walls between various financial professionals while strengthening the lines of communication to ensure effective collaboration that results in the best possible outcome for the client. While our preference is to be the coordinator, we are also happy to work as a member of your financial team if you already have a meaningful relationship with another of your trusted advisors.
Retirement Income Planning
The Retirement Income Planning process at Ryan Financial is an easy to understand, logical, customizable strategy that was designed to maximize the likelihood that your nest egg will last throughout your lifetime. If you are not at risk of outliving your funds, our strategy is a highly effective way to maximize the value of your portfolio for the benefit of your heirs or to create a charitable legacy.
At the foundation of the strategy is a guaranteed income stream vehicle meant to provide a baseline income amount to ensure life’s essential expenses are covered in retirement. Specific product choices are determined based on a full analysis of the client’s investor profile.
The next level of the strategy contains a tactical allocation across several unique portfolio strategies with distinctive risk profiles. Each strategy has an intended minimum holding period in order to allow for the strategy to maximize its potential contribution to overall portfolio returns.
At the core of the strategy is the fundamental concept of buy low and sell high, or more appropriately “don’t sell low”. Our strategy allocates at least 2 years of required income to low volatility cash and cash-like investments in order to avoid selling more volatile equities at a time when these values are depressed. Other components of the overall portfolio allocation include balanced allocations, absolute return and alternative investment strategies.
Each year, we evaluate the various allocation sub strategies to determine which should be used to replenish the cash in order to provide income for the upcoming few years. There will be times when it will make more sense to sell stocks after coming off of a large bull market run. Other times is may make more sense to raise cash by liquidating shares of the absolute return strategies. These decisions are all made on a client by client basis, taking into account recent and expected future performance, taxes, and expectations of future income needs.
Some clients engage our firm exclusively for our investment management capabilities. The investment management process at Ryan Financial works similarly to the retirement income process in that, when possible, client funds are allocated across our proprietary model allocations. Our clients’ portfolios are managed at two distinct levels; the models are managed as independent portfolios and the overall allocation across the models is customized to meet the client’s needs as well as to align with our firm’s forward looking tactical asset allocation thesis. When managing the models as independent portfolios we review the underlying managers on a daily basis to assure that they are worthy of continued inclusion. From time to time we will rotate in additional managers and remove those who fail to pass our statistical and qualitative standards.
When managing the overall allocation across our models we take a forward looking approach. Rather than look exclusively at the historical relationship between various asset classes, we instead formulate an educated thesis and allocate accordingly. For example, historically bonds were used as the primary tool for risk mitigation in portfolio management. With interest rates at all-time lows, it can reasonably be expected that rising rates will create a headwind for traditional fixed income securities. Because of this, we seek to mitigate risk by reducing exposure to core fixed income strategies in favor of non-traditional risk mitigation techniques like hedging strategies and low risk derivative investing.
Coordinating all of your financial affairs is an ongoing process. Integrating the many facets of your financial life can be a very complicated, but is always based on two important functions; asking you questions and listening to your answers. Unlike many large firms, we do not provide cookie-cutter solutions. Each financial plan is custom designed to help you achieve your goals given your resources, attitudes and circumstances. As part of our quarterly review process any needed changes to your financial plan will be identified and acted upon in a timely fashion.