Definitive Strategy, Capital Results

Financial markets are in a perpetual state of change. Volatility can put your investments at great risk, at a moments notice – be prepared with prudent oversight.

Every versatile financial plan should consider your current circumstance, as well as the necessary milestones en route to your goals. A smart plan takes into consideration your cash flow, how to properly navigate tax laws, and what your short-term objectives may be – all the way through to your retirement goals. With the countless potential paths to take, and an infinite number of unique circumstances, your plan should be just as unique as you are – comprehensively tailored to your objectives, and built to overcome your obstacles.

Your Strategic Planning Partner

A strong financial plan that continues to perform to, and through, retirement is a difficult thing to build. Market volatility, fluctuations in income, surprise expenses… All of these scenarios are common in life – and they can even occur simultaneously. Accounting for these shifting events is best done by someone who not only knows how to capitalize on – and use – volatility, but by someone who knows your goals and objectives in life.

The team at Riegel Financial wants to get to know you, and what drives you. We are eager to spend the time building that relationship with you – to understand what tolerance you have for risk, and your current financial needs. Taking this extra time to understand your objectives will help us weave a plan seamlessly for your life.

Breaking The Mold - For You

Many investment programs, today, examine total return and total risk – where risk is defined as the volatility of a set of returns, and measured by standard deviation. While this is a good start, we don’t feel that it goes far enough – specifically because it fails to distinguish performance of the market from that of the investment manager. Risk budgeting is the process by which the risk in a portfolio is broken into its components in an attempt to mitigate total risk more effectively. We select managers based on the excess risk-adjusted return (“alpha”) generated by the manager relative to its appropriate benchmark, and the level of additional risk (“active risk”) taken on in pursuit of that alpha. Not only does this allow us to monitor true active risk in any portfolio, but it also ensures the performance in the portfolio comes from the manager – rather than the market.

A Long-Term Relationship Helps Build Long-Term Wealth

Skilled managers should be able to generate alpha in any market environment. A high-alpha portfolio provides incremental returns when the market is rising and, perhaps more important, reduce the downside in a falling market.

In areas where manager skill is unlikely to affect portfolio performance, passive investments such as exchange-traded funds (ETFs) can also be used to mitigate a portfolio’s total risk, as well as minimize costs. ETFs, which seek to replicate benchmark or index performance, take on only the risk inherent in the market, and typically have lower fees than active managers.

That’s why we evaluate and attempt to mitigate market risk and return through an asset allocation process. We use forward-looking assumptions in an effort to maximize the return potential at any level of risk selected.

Step 1

Develop forward-looking risk

Develop forward-looking risk, return, and correlation assumptions for different asset-classes

Step 2

Optimize asset allocation

Optimize the asset allocation, and build efficient portfolios from the selected asset classes

Step 3

Select investments

Search for, and select, high-quality investments that have consistently compensated investors for the active risk taken, and construct our client’s portfolios

Step 4

Continuously review

Continuously review every element of the process to ensure that we are providing an institutional quality program that works toward reaching clients goal.

Investors should carefully consider the investment objects, risks, charges, and expenses of Exchange-Traded Funds (ETFs) before investing. The prospectus and summary prospectus is available from your financial advisor and should be read carefully before investing. Every investor’s situation is unique and you should consider your investment goal, risk tolerance, and time horizon before making any investment. Investing involves risk and you may incur a profit or less regardless of strategy selected. Diversification and asset allocation do not ensure a profit against a loss.

Get Started Today

Set an appointment with one of our team members today!