Broker Check


Our Process


WE ARE DIFFERENT . . . HERE WE OUTLINE HOW & WHY


BOUTIQUE APPROACH
While we are large enough to manage a broad and diverse client base nationwide, our structure is compact enough to always deliver personalized client service. That means you will get all the benefits of a large institutional firm without the cookie-cutter, ‘you’re only a number’ approach. At FITS Wealth Management, you truly are family!

 

TACTICAL INVESTMENT MANAGEMENT
While most money management is INSTITUTIONAL, we add in the TACTICAL approach to ‘HEDGE THE DOWNS!’ But what does this actually mean?

The big-box managers follow institutional management, which – in a simplified way – means that they design ‘model portfolios’ that will ‘fit’ the needs of different types of investors. So, conservative investors go into the conservative model portfolio, aggressive go into the aggressive model, and the moderate investors are placed into a model somewhere in-between. Once your risk tolerance is quantified, you are placed into portfolios that ‘fit your risk profile’ and, on a quarterly basis, the model portfolios are rebalanced to their initial allocations of asset classes. For example, one conservative portfolio may be set at 10% cash, 40% government bonds, and 50% equities in the utilities and consumer staples sectors. Once a quarter has passed, the 50% equities might have grown to be 60% of the value of the total portfolio, so in order to realign to the original asset allocation, equities will be sold and reinvested into the government bonds, to keep the cash, bonds, and equities percentages as the model was designed. This rebalancing is simply adjusting your overweight and underweighted holdings to the model portfolio’s allocations. As you can see, this is very passive and reactive, not preemptive or proactive money management. Unless the institution that created the model portfolio changes the model’s asset class allocations, rebalancing is just a math exercise – lacking any real management.

Tactical asset management is the opposite. On a weekly, even daily, basis, data points are being analyzed to determine what the current market is and where it is going, and those assessments lead to buy and sell transactions as often as necessary. This management style allows us to quantify a client’s MAXIMUM tolerable loss while pursuing portfolio growth and to hedge the risk up to that maximum acceptable loss. While there are never ANY guarantees in market investments, we have found this tactical, quantifiable hedge a tremendous tool for our clients, giving them more confidence regarding their overall investment strategy, especially during volatile times where the market experiences disruption and declines. So, while we do provide traditional institutional management options, we highly leverage our tactical management capabilities for our clients’ benefit.

Read more about our Investment Management services below.

COMPREHENSIVE PLANNING
One of the secrets of the money management business is that most ‘financial advisors’ DO NOT do financial planning. Most provide only financial statements or if they give you a “plan” they run some 15 to 50 page ‘Financial Analysis Report’ produced by some financial software which simply gives you a projection of the probability of whether your portfolio will last throughout your lifetime based on your stated income need (this is called a Monte Carlo analysis in our industry). *But* if you really look at the report closely, you will see that they use a future tax rate that is totally improbable, they count on your full Social Security payments with inflation increases, and they disclaim the accuracy and reliability of the report by telling you to consult with your tax professional or financial advisor… but isn’t that supposed to be them? No – it is not them because while them have the securities licenses required to manage your money/portfolio, they do not have the credentials necessary to give you tax advice or prepare a written financial plan. Because Rebecca, is a tax and Financial Planner, we leverage our Firm’s ability to provide both tax and financial planning to our clients’ advantage. We design your ‘financial house’ through our planning process to address your unique needs.

Read more about our Planning process below.

Investments

Bonds

Common Stock

Educational IRA

Traditional IRA

Roth IRA

SEP IRA

Simple IRA

Brokerage Accounts

Treasury Bills

Government Securities

Treasury Notes

Variable Annuity

Financial Planning

Retirement Plans

Tax Plans

401(k) Planning

403(b) Planning

College Plans

Estate Plans

Money Purchasing Plans

Profit Sharing Plans

Insurance

Disability Income Insurance

Life Insurance

Long-Term-Care Insurance

For more information about our firm and the services we offer, send us a quick email or call the office. We would welcome the opportunity to speak with you.

rebecca.l.wyatt@lpl.com |  602-386-8893