Investment Management
At Coordinated Wealth Management, we believe that financial markets are efficient and this is the underlying philosophy that drives the management of your investment portfolios. We believe stock prices incorporate all known information and competition quickly drives prices to fair value. Therefore, we do not recommend strategies that involve any variations of stock picking, market timing or reliance on past performance of an investment.
Our investment philosophy is driven by decades of research and rigorous testing. We believe the market drives returns, and portfolio structure and implementation determine performance. Our goal is to provide clients with a successful investment experience, which we believe is achieved through taking advantage of the way markets are right while keeping transaction costs, fees and taxes low. Many believe superior performance comes from identifying “mispriced” securities or the ability to accurately predict economic and market conditions. Historical data proves doing so consistently net of transaction costs, fees and taxes is very difficult.
Financial Planning
At Coordinated Wealth Management, we take a holistic approach to creating a financial plan to your unique needs and desires that is as individualized as you are. Financial planning begins with a thorough understanding of where you are today and your unique goals, aspirations and dreams for the future. It is about more than investments and money. It is about your life’s purpose, values and how your wealth plays a role in achieving those dreams.
First, we must clearly understand your goals and objectives with the time horizon for achieving them. This drives the process of determining the investments and risk appropriate for you. Cash flow is at the heart of any plan, which requires asset and liability matching to meet needs as they come due. This requires careful evaluation of strategies and products that are appropriate for your situation.
As an independent RIA providing services on a flat retainer fee basis, we have created an environment to put your interests first. Since we are not tied to any one company, product or investment, we are free to objectively evaluate the alternatives. Let us help you create a financial plan designed to achieve your life and legacy goals.
Retirement Planning
At Coordinated Wealth Management we know retirement is not only about having a large sum of money when you quit working. More importantly, it is ensuring that you will have enough income to last throughout the entirety of your and your spouse’s retirement.
The shift from accumulation of assets to creating an income stream can be the source of much anxiety and fear. Common fears include outliving your money, inflation, investment mistakes and market volatility. These fears around retirement income exist for most of us regardless of our resources. The retirement income needed is relative based on your lifestyle prior to retirement and the one you want to enjoy after retirement.
The challenges in securing a retirement income that is reliable, predictable and stable for the entirety of your and your spouse’s retirement horizon can seem daunting. We need to build a plan that provides for your needs during both good and bad economic conditions. The process to achieve a successful retirement plan starts with dividing income into two types: 1) essential income and 2) extra income. Essential income provides for the lifestyle desired to remain comfortable and meet your essential needs. Extra income is for fun and family that is not essential to remain comfortable. Let us help you create a plan designed to meet your retirement goals and allow you to sleep well knowing you have planned for your essential needs for the lifetime of you and your spouse.
Estate Planning
Coordinated Wealth Management’s team collectively has more than fifty years’ experience in estate planning. While we are not attorneys, we collaborate with your attorneys in developing a plan to meet your overall goals. Tax laws are constantly changing and your plan needs regular review. As laws and life change, documents need to be updated to make sure they meet your desires. Tennessee is one of the five most trust friendly states in the US. This provides for great flexibility and opportunity to minimize taxes while distributing your assets according to your wishes.
We believe the following seven objectives should be considered in developing/reviewing every estate plan:
- Will there be adequate income when needed?
- Will your assets be distributed properly?
- Will there be any unnecessary taxes?
- Will there be adequate liquidity?
- Will business control be in the right hands?
- Will there be any surprises for your heirs?
- Have end of life issues be adequately addressed?
Risk Management
At Coordinated Wealth Management, we believe there are three primary areas of risk that every individual needs to address. They are investment risk, mortality/morbidity risk and longevity risk. We explore each of these types of risk below.
• Investment Risk
Risk is a major consideration in the design of all investment portfolios. This risk can be broken down and evaluated in the following areas. First, risk capacity is your financial ability to sustain market downturns without jeopardizing your plan or the ability to meet obligations. Second, risk tolerance is your ability to mentally, emotionally and psychologically withstand down markets without selling. Third, the need for risk is simply the amount of risk needed in order to achieve your asset growth goals. Each of these should be carefully considered and weighted in developing an investment portfolio.
• Mortality/Morbidity Risk
Mortality risk is the risk of not having enough capital to provide for your financial needs in the event of your death. These would include capital for income, debt repayment, taxes and business needs. Life insurance can provide this needed capital. Today’s market offers many types of life insurance contracts. The guarantees and sustainability of these products vary greatly. Products should be evaluated carefully so that you know your policy will be in-force when you need it. Many “Permanent Life Policies” in-force today may be in jeopardy of lapsing. Have you audited your life insurance lately?
Morbidity risk is the financial risk that comes with a disability or need for long-term care. These risks may be self-insured or provided through traditional insurance products. We can help guide you through the process of determining your exposure to these risks and the best way to provide for those needs should they arise.
• Longevity Risk
Longevity risk is the risk of out-living your money. Improvements continue to be made in modern medicine and people are living longer than ever. A couple that has reached the age of 65 has a 50% chance that one of them will live to age 90 and a 31% chance to age 95. With this increased potential life span comes the risk of out-living your retirement nest egg. In many cases, income annuities or “private pensions” can be used to provide an income stream you cannot out-live. A well crafted plan will not only provide lifetime income, but can protect and increase legacy assets.