Investment Analysis
Objective and comprehensive investment analysis and management has been a guiding principle at Ivy League Financial Advisors since its inception in 1999. Our Fee-Only services are designed to give each client the best advice we can offer, without any hidden motivations or incentives. With Ivy League Financial Advisors, there’s never a question of where our investment loyalties lie: with you.
Our investment recommendations are based on achieving each client’s life goals, which, in turn, come from many factors in a client’s life, such as age, years to retirement, income and spending levels, and financial goals. A component of this is the client’s risk tolerance—that is, the willingness and ability to absorb losses in an investment portfolio. Risk tolerance is an extremely important element of every financial plan: Ivy League Financial Advisors does tell clients how much risk to assume. We build investment strategies around the risk that the client tells us is acceptable.
We use long-term investments with proven investment managers to build diversified portfolios. We don’t try to pick stocks, “time” the market, or raise our returns by engaging in leveraged speculations. Modern Portfolio Theory suggests—and research has shown—that big investors in the stock market have almost perfect information, and thus, it is almost impossible to beat the market average over an extended period of time (especially when expenses are factored in). We don’t try to outsmart the market. We know that the real value-added of our expertise is building a properly diversified portfolio and keeping it on track.
Investment Policy Statement
The details of our investment management contract are spelled out in the Ivy League Financial Advisors “Investment Policy Statement,” or IPS. The IPS defines how we work with our clients to achieve their investment goals. Each document is unique and prepared in conjunction with each client.
The IPS is a clear statement of how our clients’ investments will be managed on an ongoing basis. It states exactly what we can and cannot do, and how our performance will be judged. The IPS includes:
- Investment objectives. Short-term and long-term investment goals.
- Investment assumptions. Range of anticipated returns, expenses, etc.
- Time horizon. The key period of time of concern for the client.
- Liquidity Requirements. How much cash you need to keep for your immediate expenses.
- Attitude toward and tolerance for risk. How much of a loss is acceptable, and for which part of your portfolio?
- Permitted asset classes. What can (and can’t) we invest in on your behalf?
- Constraints and restrictions on asset classes. Within permitted classes, what are the investment limits?
- Selection and monitoring investment managers. How Ivy League Financial Advisors selects and oversees investment managers.
- Review and reporting procedures. The system that ensures you can get accurate information about your investments at any time.
Investing is so much more than quarterly or annual returns. Contact us today to find out how we can get your investments aligned with your long-term goals.