TillotsonKenefick is a family asset management practice that utilizes a holistic approach to achieving financial goals.Holistic Wealth Management:
Before investing the first dollar, we ask clients to complete a cash flow analysis that accounts for all in-flow and out-flow on an annual basis. This illustrates a client’s ability to save or the need for their portfolio to provide supplemental income. Second, we help clients complete a net worth statement. This offers a visual breakdown of capital market and real estate assets as well liabilities. This then becomes the benchmark in measuring our collective progress in growing your net worth. Thirdly, we ask you to outline your goals in terms of 1,3,5,10 and 20 year time horizons, enabling us to understand your priorities and remain focused on your objectives. Fourth, we will audit your life insurance. The appropriate level of insurance will financially protect your cash flow, net worth, and allow your loved ones to achieve the goals you outlined. Fifth, we will maintain copies of your last year’s tax returns, providing us the information we need to understand the implications of generating income as well as capital gains and losses. This will also enable us to advise you about any opportunities for tax-qualified and non-qualified savings available to you. Lastly, maintaining copies of your wills, trust and all powers of attorney will prompt annual reviews and discussions about your final wishes, insuring the documents remain current with your life and any legislative changes. While we can not give you tax or legal advice, we can provide thoughtful, experienced direction to the questions and opportunities you should be asking your lawyer and CPA.Portfolio Construction:
We are top down money managers. This means we begin with an informed opinion about the prospects for our global and domestic economies based on Wells Fargo Advisors and our correspondent research. We then utilize consensus estimates for the major domestic indicies to outline the best, worst and likely growth prospects for the calendar year. Equally important to the equity numbers is a forecast for interest rates. Taking these numbers, we devise an over-weight, market-weight or neutral-weight stance to the nine major sectors of the economy. Using similar methods and reasoning, we identify taxable and tax-free fixed income securities. Finally, we make security selections that we believe represent the greatest opportunity for growth and income. Marrying our market forecast to the individual needs of our client drives the percentage of stocks, bonds and cash that will comprise their portfolio. While we remain flexible to the changing opportunities in the market from year to year, a long term commitment to our strategy and discipline is necessary to grow your net worth.Security selection:
Fundamental analysis of a security seeks to understand the prospects for a given company. We use this type of analysis to determine what we would like to own. Knowing what their core business is, who is running the company, past performance, future prospects as well as the metrics of PE ratios, book value, dividend yield and the like are essential to determining our affinity for a particular equity security. After screening for stocks that meet the strong fundamental characteristics we are looking for, we further scrutinize these securities for their technical attributes. Technical analysis seeks to understand whether a stock is likely to appreciate or decline. We use this methodology to determine when we want to purchase or sell a security. Is the stock relative to its own history, the other stocks in its sector and the market in general; out-performing, performing in-line or under-performing? Fixed income securities are purchased based on their rating, coupon and yield-to-maturity. We overlay this information against the interest rate cycle to ascertain when to purchase or sell.Communication:
After four initial consultations to discuss your assets, goals and the construction of your portfolio, we will want to meet formally twice a year. Henry Sale will contact you to set-up a meeting to review your portfolio and any changes in your needs and life. We like to think of it as the state of the family empire. We will send you a letter after every semi-annual review outlining what we said and heard. You should contact us with any corrections that should be made to our notes and your file. This should be your confirmation that you have been well heard and understood. In addition to your monthly statements and confirmations, you will receive a quarterly performance monitor. Finally, you should feel comfortable contacting us at any time with any questions or concerns.
Technical analysis is only one form of analysis. Investors should also consider the merits of Fundamental and Quantitative analysis when making investment decisions.
Technical analysis is based on the study of historical price movements and past trend patterns. There is no assurance that these movements or trends can or will be duplicated in the future.