Investment and Financial Planning Services
Retirement Planning
The Basic Retirement Plan is a written plan that attempts to answer the following questions:
Tax Planning
The Basic Tax Plan is a written plan that attempts to answer the following question:
“Given my level of income, what can I do to reduce the amount of taxes I pay in the future?”
In order to answer these questions, tax returns, pay stubs, W2s, 1099s, and other relevant tax materials will need to be analyzed and discussed. From the analysis, AFG will be able to determine what types of strategies the client may consider to reduce the amount of taxes they pay in the future. Possible strategies may include establishing a new retirement account, reallocating their investment portfolio, charitable giving, or other types of gifting. Sophisticated strategies may need to include a tax advisor which specializes in the relevant area of tax law.
Education Planning
The Basic Education Plan is a written plan that attempts to answer the following questions:
“How much do I need to be saving in order to put my loved one through school?”
“Am I saving enough?”
In order to answer these questions, an agreed upon rate of return, current tuition rates, inflation, current savings, and length of schooling will have to be discussed. Of course, by using variable (fluctuating) investments, these numbers may or may not be accurate. The calculations will be derived by using an expected rate of return.
Insurance Planning
The Insurance Evaluation is a written plan that attempts to answer the following questions:
“Do I have enough insurance?”
“Do I have the right type of insurance?”
“Am I paying too much?”
In order to answer these questions, current policies, income, debt, health, occupation, and other financial goals may need to be discussed. From the evaluation, AFG will be able to determine what strategies may need to be considered to protect the client and their family in the event of a claim.
Estate Planning
The Basic Estate plan is a written plan that attempts to answer the following questions:
“What can I do to minimize estate taxes when I pass away?”
“If I were to pass away today, how much in estate taxes would my heirs owe?”
In order to answer these questions, net worth, and relationships with heirs and financial goals will need to be discussed. From the evaluation, AFG will be able to determine what strategies may need to be considered to make a smooth transfer of assets when the client passes away, ways to reduce or avoid probate, and strategies to minimize estate taxes.
Investment Planning
People invest money to build wealth and to reach various life goals. AFG provides the sound advice that increases the probability of reaching those goals. Through asset allocation, we can help any individual or organization derive a strategy to meet both their short and long-term goals without taking any undue risk.
We believe that active portfolio management will outperform the general market over time. Thus, we use a thorough selection process when building portfolios primarily of actively managed mutual funds. Historical performance is important, but not as important as risk management. Therefore, the amount of risk taken with each investment and the amount of risk each investment adds to or takes from the portfolio should be primary concerns when selecting investments for each client. By taking this strategy, we believe we can add alpha to our clients’ portfolios and help them build lasting wealth.
For tax sensitive clients, portfolio turnover should be minimized. This can be done by selecting either low-turnover, actively managed products or by selecting individual securities. If stocks are chosen, they will be selected by analyzing the companies’ financial statement and selecting stocks with strong financial ratios in categories such as liquidity, debt management, turnover, and profitability. Having these strong ratios reflects the competence of both the financial management and the operations management of the companies. Also, the companies should be selected when they are considered under-valued by analyzing the companies’ value ratios and comparing them to other companies within their industry as well as the general market.
By using an efficient frontier, we will help all clients derive an asset allocation model that fits their risk tolerance while maximizes their return. Having discipline and patience is a characteristic shared by most successful investors. By using asset allocation, we will minimize emotional investing which will allow clients to remain invested through all market cycles. We believe that time in the market is much more important than timing the market.