Our strategy for a client may result in a process where they have a one, three or even a five year game plan to get their portfolio invested into an asset allocation which we feel will help them meet their goals. However, rather than starting the client out with the optimal asset allocation, we may structure a more conservative portfolio for year one, educate the client and work with them to understand the markets and their own risk tolerance. Over time, we attempt to re-structure the portfolio into an asset allocation which we feel is appropriate to meet their goals. If the client cannot tolerate this amount of risk perhaps something else must change, such as their reducing their current spending, increasing savings, reducing their long term goals or adjusting the time frame in which they would like to meet those goals.

So, let’s suppose we begin with Portfolio A. Over time as the client builds up confidence, learns more about the markets, builds trust with our firm and learns how to track their results, we can gradually guide them to Portfolio C - if that is the one which we feel will potentially meet their long term financial goals. While this takes time and patience, we find it works over time. It prevents a client from “freezing” and keeping all of their funds in short term, low yielding investments and also guards clients against liquidating investments at an inopportune time in the market. The phrase, “long term investing” might be great on paper but the reality is that many clients cannot see the long term due to short term nervousness.

Communication is a key component of the client-advisor relationship and at Chapin Hill we structure our communication to meet a client’s needs and expectations. Some clients want to hear only the big picture and other’s like to follow the market. Some clients have a side portfolio which allows them to make their own picks or add to positions we may hold in Chapin Hill portfolio models. We attempt to create a customized approach while working within our models to give the client what they want. It’s all about you! With you, our business continues to flourish and we thank you!