The Portfolio Diagnostic helps you and your team at Crown Haven develop an understanding of your current portfolio’s strengths and weaknesses, and how the components of your portfolio align with or contradict your stated goals and objectives.
Goals & Outcomes:
- Understand the inner workings of your portfolio
- Identify Threats to Financial Success
- Identify Opportunities to Optimize Investment Holdings
- Minimize Portfolio Drag, excess costs, and expenses
- Complete a Risk Capacity Assessment
- Complete a Portfolio “Crash” Simulation
- Complete a Retirement Income Map
Using this information, we can make strategic decisions on what to keep, what to add, and what to discard to fully optimize your investment portfolio.
Reduced Expense Ratios
Our team looks at the ETFs and mutual funds in your portfolio, identifying their expense ratios.
In many cases, funds with high expense ratios can cause a significant drag on your portfolio.
Crown Haven looks for opportunities to optimize by selecting lower-cost options that target the same indexes as the high-cost funds, by replacing retail-class funds with institutional-grade funds, or by eliminating altogether, funds that can be replaced with groups of securities (zero expense ratio) or other more secure holdings with similar performance and no expense ratio.
Low Cost Advisory Fee
High investment management fees can also significantly hurt your portfolio’s bottom line.
Crown Haven’s purpose-based planning approach reduces our client’s advisory fees, on average, by over 50%.
These savings translate into hundreds of thousands of dollars of extra wealth for our clients over their lifetime.
Put simply, Crown Haven is only successful if you are successful; and our focus is on you winning over the long-term, not just the short-term.
Minimized Trading Costs:
Trading costs can be an easily mitigated source of inefficiency in a portfolio. We keep trading costs to a minimum by choosing fund managers that have a low-turnover approach to trading, and by avoiding trading fees wherever possible.
Optimized Asset Location & Allocation
Strategic decisions about where to place high-yielding investments and other tax-sensitive securities can have a significant impact on your after-tax income. We look to optimize the placement of your securities between tax-deferred and taxable accounts, taking care of your portfolio’s organization from a tax standpoint.
See Step 4: Advanced Tax Planning for more information.
Optimized Secure Income
Your income from your portfolio in retirement can be a significant source of your overall income in retirement. We help you identify your cash flow needs, working backwards to target an achievable yield – from a secure source – that supports your ideal lifestyle in retirement.
See more about Secure Income Planning in Step 3: RetireSHIELD® Plan Design.
Optimized Portfolio Diversification
How your portfolio deals with exposure to different markets can act as both a safeguard against market downturns and a source of potential gains. Working with institutional partners we strategically select your investments to include an optimal exposure to different markets, industries, and sources of income while our institutional partners provide additional safeguards against downturns and sources of additional value with algorithm-driven buy/sell signaling and built in volatility control mechanisms.
Risk Capacity Assessment
You may have heard of risk tolerance, but have you ever heard of risk capacity?
Your risk tolerance is how much risk you can (or think you can) tolerate.Your risk capacity is how much risk you can actually handle to live the life you want to live.
Financial planning is nothing more than an understanding of the target (or targets) we’re aiming for, math, and determining if we’re using the proper tools to get the job done.
For example, if you have a target retirement date of 10 years, a $1,000,000.00 portfolio, and a desired retirement income of 50k a year from your investments, then you do not have the risk capacity to have a majority of those assets in high risk investments, because you will need to rely on them to create a replacement income so that you can enjoy your life without employment income very soon.
A major part of Crown Haven’s diagnostic is to zero in on your exact risk capacity, then determine how that aligns with your current financial positions.
Portfolio “Crash” Simulation
Have you ever wondered how your portfolio might perform in a downturn? How about in an environment where interest rates rise, or inflation increases dramatically, or we experience the exact same conditions as the Great Recession, Tech Bubble or Housing Crisis?
Using a highly sophisticated piece of 3rd party analytical software, Crown Haven is able to provide you unprecedented insight into your portfolio – with 95% accuracy.
Gleaning this information is invaluable as we are able to determine what components of your portfolio are in alignment with your goals and which are actively working against your best interests.
Retirement Income Map
A wise man once said that it’s hard to find a treasure without a map.
Thankfully, Crown Haven is able to provide you unparalleled optics that equate to your very own “treasure map”.
By inputting your exact positions from your current portfolio, we are able to illustrate for you with 95% accuracy how your retirement will play out – considering inflation, future downturns, different withdrawal rates over time, cost of living adjustments, lump-sum distributions, reallocations, and more.
This knowledge gives you the confidence to make a truly informed decision about your positions and whether or not they are fulfilling their intended purpose.