Customized Investment Process
At Red Mountain Financial Partners, our customized approach to investment management seeks to place your interests first. As independent advisors, we have no proprietary products, sales quotas or sales goals, which eliminates conflicts of interest and helps to ensure that all decisions are based on furthering your financial well-being. As a Chartered Market Technician® (CMT®), firm president Michael Warren brings more than two decades of experience developing customized investment portfolios tailored to each client’s needs and goals with a strong focus on managing risk.
Our customized investment process seeks to create individualized asset allocations based on your goals, risk tolerance, time horizon and liquidity needs.
Our process begins with an initial meeting where we will:
- Get to know you and discuss your hopes, dreams and life goals
- Learn about your past investment experience and determine your risk tolerance
- Discuss your liquidity needs and time horizon
We use sophisticated risk analysis software to help pinpoint your tolerance for risk and your optimal risk/return ratio aligned with your life goals and needs.
In our second meeting, we will present one of our Customized Investment Strategies to help meet the specific needs discussed in our initial meeting. We will go over each position and explain our strategy in depth.
Customized Investment Accounts
- The Accumulation Phase uses mutual funds, individual stocks, and ETF’s to facilitate growth during the years that you are accumulating wealth. This approach uses core positions paired with investments designed to take advantage of market opportunities customized to your individual needs.
- The Distribution/Income Phase focuses on creating an income stream that is not dependent on market growth, through the use of mutual funds, individual stocks, MLP’s, ETF’s, and covered call option strategies. This strategy seeks to provide a customized retirement cash flow.
No strategy ensures a profit or protects against loss. Investing involves risk including possible loss of principal. Tactical allocation may involve more frequent buying and selling of assets and will tend to generate higher transaction costs. Investors should consider the tax consequences of moving positions more frequently.
Portfolio Stress Testing
Numerous factors impact the financial markets at any given time, resulting in volatility that can have a direct impact on the short and long-term performance of your portfolio. Yet, most of these factors are well outside of your control, including trends toward economic expansion or tightening, the rise and fall of interest rates, inflation, oil prices, natural disasters, geopolitical events, and many more. So how do you make informed and confident investment decisions?
At Red Mountain Financial Partners, we believe that portfolio stress testing is a critical element in helping you to preserve and grow your wealth. Portfolio stress testing not only enables us to better understand and manage portfolio risk, but helps us to determine how your portfolio may react to different conditions or scenarios. Using advanced analytical software and tools, we are able to:*
- Model thousands of potential macro-economic and geopolitical scenarios with the potential to impact investment returns
- Track economic indicators like CPI, U.S. GDP growth, oil prices, and their movements to define economic scenarios
- Quantify the potential impact of various scenarios on your current portfolio holdings and/or recommended holdings
- Demonstrate potential outcomes in real-time from best- to worst-case scenarios
- Generate sophisticated, detailed reports, including graphs and charts illustrating scenarios and potential outcomes
- Help you make informed decisions aligned with your objectives, risk tolerance and investment timeframe
*Projections generated are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Assumptions on rates of return and standard deviation used in the analysis are based on historical return data for each security and asset class. Past performance is no guarantee of future results. Results may vary with each use and over time.
As independent advisors we utilize industry-leading research from these and other sources as we seek to provide you with timely, objective, and unbiased financial and investment advice:
- LPL Financial
- Credit Suisse
- Standard & Poor’s (S&P)
Our affiliation with LPL Financial enables access to one of the nation’s leading financial and investment research teams. The LPL Financial Research team consists of more than 35 seasoned and accomplished industry veterans, comprising one of the largest and most experienced research groups among independent brokerage firms. LPL Financial Research works continuously to help our team interpret and adjust to the latest developments in the world’s capital markets.
LPL Research analysts:
- Conduct traditional due diligence, which consists of both quantitative and qualitative research
- Use both proprietary and third-party analysis
- Provide in-depth due diligence and recommendations on open-end mutual funds, separately managed accounts, variable annuity subaccounts, and ETPs
- Monitor and maintain a select list of separately managed account managers, third-party investment advisors, and alternative investments that meet the firm’s stringent criteria