The investment process focuses on fundamental research and analysis rather than proprietary formulas. It begins with asset allocation based on risk tolerance and return needs. Money managers are selected through a rigorous quantitative and qualitative process to manage specialized asset classes. Portfolios are designed to meet different risk and return goals. Rebalancing helps maintain target allocations and capture tax losses. Performance is regularly monitored and adjustments made as needed, while managing emotions during market volatility is key to long-term success.

1. INVESTMENT PROCESS
A lot of investment firms extol their proprietary formulas, special processes or sheer size. We’ve never seen any
firm or their process significantly outperform the market over any extended period of time. We don’t have a
secret process. We just focus on fundamental research, analysis, and you.
Asset Allocation Money Managers Portfolio Design Rebalancing Monitoring Managing Emotion

2. Monitor
Market
Data
Strategy
Review
Conclusions
Tested
Allocation
Decisions
Semi-
Annual
Deep Dives
Systematic
Rebalancing
Asset Class Allocation
Asset Allocation - Studies beginning with Bengen (1994), as well as our experience, indicate that asset allocation is responsible
for the majority of a portfolio’s return over time. So that’s where we start our investment process. We base our asset allocation
on a number of factors including the amount of risk you want and the return you need for your plan to be successful.

3. Selecting Money Managers
To provide industry and market expertise in our chosen asset classes and markets, we’ve assembled a
number of specialized passive and active money managers. We follow a deliberate process to select and
monitor these managers.
Quantitative
Analysis
Qualitative
Evaluation
Investment
Process
Evaluation
Final
Review &
Selection
Database
Screen for
Specific Asset
Class

4. Portfolio Design
We create model portfolios to meet our clients’ investment goals. At one end, we have more conservative portfolios with a goal of generating
income while preserving principal. At the other end are portfolios designed for a higher level of volatility and growth.
Explore
Client Values
& Vision
Create Client
Life Plan
Establish
Financial
Goals
Assess Risk
Tolerance
Define
Income
Needs
Assess Tax
Sensitivity
Create
Portfolio

5. Rebalancing
We rebalance portfolios according to market shifts, a process we believe is superior to
rebalancing once a year. We may rebalance to help keep your portfolio in line with your target
asset allocations, capture potential tax losses, and create opportunities to increase returns by
taking advantage of over reactions in the markets.
Frequent
Portfolio
Review
Rebalance
Maintain
Target Asset
Allocation
Capture Tax
Loss

6. Monitoring
We regularly monitor both the asset allocation of our investment portfolios and the
performance of our managers, adjusting both as necessary.
Review of
Neutral Asset
Allocation
Semi-Annual
Review of
Tactical Asset
Allocation
Money
Manager
Performance
Monitoring
Annual Review
of Active &
Passive
Allocation

7. Managing Emotion
There are a lot of investment gurus, TV personalities, books and websites that want you to believe that investing is easy and you can do it yourself if you just
read their book, buy their video, or subscribe to their website. The fact is, investing IS simple, but it is NOT easy. What makes it so hard is managing your
emotions when the market is dropping 10, 15, 20% or more.
The ups and downs of the market, however, present opportunities for disciplined investors to take advantage of buying low and selling high, especially with a
disciplined rebalancing strategy. Our ability to take advantage of these opportunities lies in how well we understand how you will react to DOWNSIDE
volatility. As disciplined as our process is, we still have to account for this human element and the potential to make less rational decisions rooted in fear,
panic, or greed. We combine the science of cognitive psychology with behavioral finance principles to evaluate the level of volatility you are comfortable
with. For example, we review past losses of each portfolio during previous market corrections so you get a better sense of how your investment portfolio
might react during the next correction or bear market. While past performance is no indication of future results, it serves as a meaningful point of discussion
to understand the potential losses in dollar terms, without the stress of it being an actual loss in the present. Another example of how we merge science and
practice to help manage emotions, is to calculate the impact that each level of loss has on the actual funding of your life goals. Successful investing, in our
opinion, is not about beating the S&P 500. Successful investing is about reaching your life goals. This is another example of Financial Life Management in
action.