Wealth Accumulation Target
Guide
Here we'll cover some concepts to better help you understand how we approach constructing and implementing our asset allocation portfolios. We'll discuss how volatile annual returns for different asset classes can be. We'll highlight why rebalancing is so important for these models. Lastly, we'll walk you through our Wealth Accumulation Target process guide so you understand how it works.
Diversification
& Rebalancing
What makes asset allocation models effective is the combination of exposure to multiple asset classes and their rebalancing methodology. Reference the chart to your right. Since 2009 we've had 5 different asset classes that were the top performers for the year. Twice it was Cash! The oldest maxim in investing is, "Buy low, Sell high". Chasing return can result in disaster. Look at 2017.
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​If you bought the best performing asset class, emerging market stocks (EM) up +37.8%, at the end of 2017 to chase return you would have been very upset in 2018 with your -14.3% loss. Asset allocation models aren't about picking ONE specific asset class. They're about broad exposure to multiple asset classes and then using the rebalancing process to "Buy low, Sell high".
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Let's use our 2017 example again. Rebalancing a portfolio is about bringing the investment exposure back into alignment with your target. This means that investments that have performed really well are typically going to be sold. This is because their growth took them above the target allocation. Investments that have done poorly, or just not as well, are going to be bought because their performance has them under target exposure. We've sold the best performers (High) and bought underperformers (low). With this methodology you don't need to predict "next year's best asset class". You just need time. Time to keep taking advantage of the market's volatility & the constantly changing economic landscape.


WAT Process Guide
Your engagement experience with us is always customizable to your desires & the figure on the left is a general guide. Our WAT clients are typically looking for a lower level of engagement because of their busy lives. This solution is designed to address a retirement need 10 years in the future. That means it doesn't require your daily attention - that's what we are for.
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The initial step is developing a financial plan. We've created an easy to understand & easy to complete form that will provide us all of the information we need to create your plan. You fill this out in your own time and get it back to us.
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Once we have the form we'll complete the financial analysis. We offer three presentation options to our WAT clients. One, a traditional in office meeting. Two, we can present the analysis results over zoom. Lastly, we will complete a digital review. This is when we record a video highlighting our findings & recommendations. We send you this private video to review in your own time.
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Once you've seen the plan you make the decision if a partnership makes sense going forward. If it does we complete the digital account opening process through MW's custodian Charles Schwab and follow the engagement schedule you've previously selected. That's it! You're a few steps away from taking control of your personal finances. Use the form below to contact us if you're ready to get started!