In addition to our partnership and independence, our clearly defined and disciplined processes make us unique when compared to other wealth management firms. Our most important distinguishing feature is the Three Pillars of Wealth Management, which helps us guide you through the execution of your holistic wealth plan.
The Three Pillars
As advisors, we believe that a fundamental part of our job is to help you avoid the rollercoaster of market volatility while also creating financial stability towards achieving your goals as we move through our process and begin to develop and implement a plan for managing your wealth, we rely on our Three Pillars. This innovative approach is designed to help you simplify and organize your affairs while managing risk and building your wealth.
The Three Pillars are:
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Pillar One―Grow & Protect: Picture a disciplined process for managing your investment accounts that seeks to capture growth when the market is rising but is also prepared to help protect capital when the market is falling. Grow & Protect can be thought of as a capital preservation or defensive model with a built-in strategy to also play offense when the risk-reward environment warrants. Picture using a combination of qualitative and quantitative tools to implement a strict sell and re-entry discipline to help you towards achieving your objective. Our qualitative tools employ fundamental analysis based on our proprietary criteria to filter all the investments down to the investments appropriate for our clients’ portfolios. Our quantitative analysis takes advantage of sophisticated technology to aid our decisions for entry and exit points. In essence, our disciplined process reduces attitude and opinion with the goal of creating stable risk managed portfolios with impressive results. No strategy assures success or guarantees against a loss.
- Pillar Two―Alternative Investments: Imagine as part of your overall portfolio an investment strategy with the potential to thrive in any market climate—be it bull, bear, or flat. Imagine access to a wide range of instruments and regions as they seek to obtain superior absolute returns uncorrelated with traditional markets. These managers thoughtfully invest in highly liquid and illiquid markets in which they carefully evaluate futures, real estate, oil & gas, commodities, metals, and other income opportunities. As part of your portfolio, you have the option to employ a diverse set of these carefully selected alternative investments to help create portfolio stability and/or generate income where suitable and appropriate for your circumstances. Of course, there is no guarantee that any investment will achieve its objectives, generate profits or avoid losses. Alternative investments may not be suitable for all investors and involve special risks such as leveraging the investment, potential adverse market forces, regulatory changes and potentially illiquidity. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.
- Pillar Three―Risk Transfer: Envision guaranteeing a portion of your assets and income reduce worry that you, your family, your business, or your favorite charity might/will suffer due to unforeseen events. We all prefer to imagine the bright side of life; for us at YBFP that is the only long view to have. As your advocate, however, it is our role to also help you foresee what will happen to your wealth, your family, and your goals when you, or the world around you, experiences bumps in the road. What if those bumps become serious pot holes every 3–7 years? If so will your plan last in spite of the adversity. Without bias, we educate you on the options for transferring risk to highly rated insurance companies. This education includes attributes, detriments, risk, and fees so you can make an informed decision that is most comfortable and appropriate for you with the understanding it is dependent on the claims paying ability of the insurer.
As recent events have shown, markets can be unpredictable. Inflexible strategies won’t help you cope with rapid changes and may make it difficult to build your wealth. Of course, no investment strategy is guaranteed to produce positive results. But our multi-faceted Three Pillars approach can help mitigate volatility and provide predictability, thus making it easier to avoid stress and worry in times of crisis.
Your Financial Advocate