How We Do It
STEP 1: Assessment
At Rede Wealth we start off by getting to know you. During our financial planning conversations, we’ll ask about your current situation and what goals you may have. When you imagine the future, what matters most? Do you want liquidity for near-term purchases like a home? Do you plan to fund a child’s education or retire by a certain age?
In addition to speciﬁc investment goals, you need to establish a time horizon for every objective. Consider where you are now, ﬁnancially, and where you want to be in 5, 10 or 20 years.
After establishing your goals and/or needs, consider your tolerance for risk. Long-term investors can be less concerned about short-term market ﬂuctuations because they have more time to recover from losses, whereas individuals with a short time horizon have different considerations.
If you are unclear on your goals or risk tolerance, we can help you assess and evaluate your current ﬁnancial circumstances and establish an investment strategy.
STEP 2: Allocation
Though many of us were taught to save, very few were taught to invest. That’s why we see so many people tucking money into a variety of vehicles, like IRAs, 401(k)s, and college funds, and falsely assuming it will create enough wealth to last a lifetime.
We cannot ensure a proﬁt and or guarantee protection against loss, but we can build your conﬁdence and a coherent portfolio investment process to position your wealth for growth.
We’ll guide you to weigh your desire for higher returns against your tolerance for market setbacks using our copyrighted MRE scale. Together, we’ll develop your personal balance sheet, which outlines your current income, expenditures, and the value of your assets and liabilities. Then we create a diverse financial portfolio with a target Asset Allocation that meets your investment discipline with an estimate of total returns.
STEP 3: Discipline
Next, we deﬁne the daily activities your investment portfolio most likely needs to position them for positive results over time. These recommendations (which we call your “discipline”) are based on your unique goals, needs, risk tolerance, and other personal considerations.
Once you review our financial suggestions, you tell us whether or not you’re comfortable owning a particular type of investment, want more liquidity, or simply aren’t willing to accept the risk required to meet your goals. We’ll work with you to revise as necessary.
We encourage you to talk to us, reviewing or revising your plan as many times as necessary for you to feel comfortable. We want you to be able to feel good about your discipline, even in ﬂuctuating markets, so we won’t move forward until you are satisﬁed.
STEP 4: Track and Monitor
Creating your Investment Process once does not guarantee that you will realize your goals. You might get married, divorced, or receive an inheritance. Markets change, too, which is why we include regular portfolio reviews and updates into your Investment Process.
We’re your wealth management partners for life, not just in-the-moment advisors. Our fee-only structure helps us maintain objectivity and provide high quality advice while minimizing potential conﬂicts of interest.