We are a Fee-Only Registered Investment Advisor providing Financial Planning, & Wealth Management Services.
Professional Portfolio Management
Our Professional Investment Portfolio Management uses scientifically validated measures to help you determine the appropriate level of risk you are comfortable taking. This is coupled with a personalized Asset Allocation plan custom designed specifically for you. This Asset Allocation plan is based on the Nobel Prize winning Model Portfolio Theory. MPT allows us to construct and optimize portfolios designed to maximize your expected returns based on the level of risk you are most comfortable in taking. We then monitor the portfolio and with your input will suggest appropriate changes as market conditions dictate. The result is better returns and more peace of mind when markets get a little crazy.
Here's how we do this!
1. Measure your proper Risk Tolerance Score.
We use a scientifically validated Risk Tolerance Questionnaire that will rate your risk tolerance on a scale from 0 to 100 with zero being the least comfortable assuming financial risk and 100 being the most comfortable taking on financial risk. This questionnaire was developed in 1999 by Professors John Grable of the University of Georgia, and Ruth Lytton from Virginia Tech. Their unique model has been used to help individuals understand their own willingness to take financial risk and also to analyze investment preferences. This assessment has been published in Financial Services Review and has been referenced in hundreds of research publications. A 2015 follow up study analyzed over 160,000 investor responses to confirm the reliability of the tool for accurately assessing one's risk tolerance. We believe taking an objective scientific approach to assessing your risk tolerance provides you the best assessment of your personal investment comfort level.
2. Develop a Personal Asset Allocation Plan
We will then design a personalized Asset Allocation plan for you based on your appropriate risk tolerance to ensure you receive the greatest return for the amount of risk you are comfortable with. Ensuring you are comfortable your portfolio is working hard enough for you while at the same time allowing you to sleep well at night. We develop this Asset Allocation Plan across a wide spectrum of available asset classes to ensure the best results with the lowest risk you are willing to assume. This Asset Allocation Plan includes a Investment Policy Worksheet that outlines the paramaters of the Asset Allocation Strategy we will put in place.
3. Ongoing Monitoring of Your Investment Portfolio.
Once your investment plan is in place and implemented, we will monitor the portfolio to ensure the parameters in the Asset Allocation plan are maintained and will communicate with you to further ensure the plan remains appropriate for your risk tolerance and will provide the returns sufficient to achieve your personal financial goals.
Northbay Advisors Clients enjoy 24/7 access to performance reporting and monitoring of their managed investment portfolios.