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Our Process
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And Strategic Process At International Wealth Management, we understand the importance of biblically based financial planning. Our goal is to provide comprehensive, Christian based strategies for achieving your financial goals.      1. 3-6 Months of living expenses in your savings to cover emergency situations such as loss of a job, medical bills, automobile repairs, etc... Proverbs 21:20 In the house of the wise are stores of choice food and oil, but a foolish man devours all he has. 2. Credit card debt within reason. Proverbs 22:27 The rich rule over the poor, and the borrower is servant to the lender. 3. Adequate life insurance coverage to cover home mortgage, auto loans and income replacement in case of premature death (we can help you with this). I Timothy 5:8 If anyone does not provide for his relatives, and especially for his immediate family, he has denied the faith and is worse than an unbeliever. 4. $2,000 - $5,000 and up ready to invest once #1-#3 are done. Ecclesiastes 11:2 Give portions to seven, yes to eight, for you do not know what disaster may come upon the land. Matthew 25:23 His master replied, "Well done, good and faithful servant! You have been faithful with a few things; I will put in charge of many things. Come and share your master's happiness!" Your Investment Goals and Objectives The process of financial planning evolves around your long-term financial objectives and goals. It is vitally important to have clearly stated objectives, so that we as advisors can recommend a portfolio that suites your risk tolerance. Our advisors at International Wealth Management will guide you through the process of defining your financial goals, so that we can design the optimum portfolio for your specific personality and risk tolerance level. Many of our clients have a strong inclination to invest in securities that are in fine tune with their biblical beliefs. As Christian investors ourselves, we are supporters of such investing. We can provide you with a financial profile using Christian Values. A financial profile provides a snapshot of your financial standing at a certain point in time, and must be reviewed every 1-3 years. A sound financial profile also takes into account your individual financial "temperament"--how you feel about money, and the special needs, concerns, and desires you have about how your money glorifies God, and about how your future. We consider your whole picture and then make recommendations for you on how to improve your financial outlook--based on your needs and goals.  Investing with Christian Values Increasing your Net Worth Reducing Your Taxes Creating or Improving your Inflation Hedge Funding Education and Retirement Goals Planning for your Retirement Using Insurance Effectively Providing for an efficient distribution of your Estate. Asset Allocation: Why Diversify??? Once all of your financial goals have been defined, and your personal assets have been analyzed, we begin to construct your financial plan. This plan will outline the strengths and weaknesses of your current financial situation, and allow us to build an investment strategy to fulfill all aspects of your financial health. The dollars within your portfolio, will be allocated amongst securities of various asset classes, categories, sectors, nationalities, risk levels, etc… By implementing broad diversification, we are able to minimize the risk levels that are required to achieve your objective. Furthermore, we may modify your current portfolio so that it takes on less risk, yet achieves a higher return than you have in the past. Asset Allocation is perhaps the most important aspect of your portfolio. Studies have shown asset allocation decisions to account for over 90% of the variability of a portfolio’s return. Risk Minimization (Risks vs. Returns)    
Risk analysis of a security can be extremely complicated and confusing. Financial Analysis is a huge array of calculations and formulas based on past performances. But in its most simplistic state, we minimize risk by reducing the volatility or standard deviation of your portfolio. Diversification allows us to do just that. By adding securities to your portfolio that are negatively correlated, the portfolio will assume less risk. For example: Assume your portfolio has 2 stocks in it. As one stock rises, the other falls (and visa versa). At the end of 10 years, both stocks have hit extreme highs and extreme low points, but the portfolio maintained a steadily increasing balance over that 10 years. This would not be the case if you had only one stock, or if you had several stocks that were not negatively correlated. By reducing the volatility of the aggregate portfolio, we decrease the standard deviation. By accumulating several stocks with different volatilities, we are able to analyze the volatility of the entire portfolio (Standard Deviation). For example: IF your portfolio has a Standard Deviation of 10%, and an expected return of 12% per year, this is the risk you are taking: 
1. You have a 68% chance of achieving a 2% to 22% total return within your portfolio on any given year. 2. You also have a 95% chance of achieving an -8% to 32% total return within your portfolio on any given year. 3. You also have a 99.5% chance of achieving an -18% to 42% total return within your portfolio on any given year. This information will be presented to you in your portfolio. If you are not comfortable with the risk levels presented to you, we will reallocate your portfolio, and provide a diversified portfolio with the risk level that you are most comfortable with. Implementation of our Plan At this point in our financial analysis, we are ready to implement the strategy that we have so carefully designed. For now, we are just focusing on the investment side of your financial plan, but remember that International Wealth Management will be assisting you with all financial aspects of your life. It is in this stage of the process, that we select the numerous securities to invest your money in. Before a fund is selected, it is screened through a rigorous and quantitative analysis so that we can choose from top performing funds. This extensive analysis looks at things such as historical returns, risks, performance rank within its peer group, manager tenure, etc... Evaluating, Monitoring, and Rebalancing Implementing a financial plan, is only the first step in having a financially secure future. As a client with International Wealth Management, you will receive quarterly statements of how your portfolio is performing. Each year we will sit down together and reevaluate your financial status. Often times, we will find that you need to reallocate funds. As you grow older, your situation will change. You may want to buy a new home, or you may want to pay for your grandchild’s education. Whatever the case may be, we will make the necessary arrangements so that your financial position is not jeopardized in any way. Our Investment Methodology International Wealth Management’s goal is to strengthen your financial position, by consolidating your entire financial situation into one financial plan, and then investing your assets in a way that compliments your current situation. We believe in long term investing, and model our portfolios in a conservative and diversified manner. Our portfolio’s consist of historically successful funds, with excellent track records and fund managers. HOWEVER, PAST PERFORMANCE IS NEVER AN EXACT INDICATOR OF WHAT THE FUTURE MARKETS HAVE IN STORE FOR US. |