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  • 1. The Portfolio Management Solution™ Fully coordinated and integrated planning. | www.faiadvisors.com | 888.466.5453 The Risk Appraisal™ The Confidence Builder Experience™ The Strategic Design™ Your Portfolio Blueprint™ The Transition Matrix™ The Relationship Advantage Process™
  • 2. 1 The Risk Appraisal™ You are the focus of our work so it is critical that we go through an assessment that helps us identify your risk comfort zone. At this point we will identify how you reflect on financial risk as well as react to realized financial loss. The result of the risk appraisal sets the foundation for our first meeting, The Confidence Builder Experience™. Fully coordinated and integrated planning. | www.faiadvisors.com
  • 3. 2 The Confidence Builder Experience™ Having a strong and healthy relationship is essential to our work together. That will be the focus of this meeting. We will discuss the results of the risk assessment, which will help us understand how the results tend to reveal your attitude toward financial decisions. The primary objective is to gain a firm understanding of how you interact with money and then to understand the difference between the reactive and reflective nature of financial decision making. Our next step in our process, The Strategic Design™, is where we begin to formulate a strategy for structuring your financial portfolio. Fully coordinated and integrated planning. | www.faiadvisors.com
  • 4. 2 The Confidence Builder Experience™ Fully coordinated and integrated planning. | www.faiadvisors.com AN INTRODUCTION TO ASSET MANAGEMENT Macro Planning VS. Micro Topics Maintaining Independence A Few Key Issues to Understand: New Money & Old Money1. Saving & Growth components2. on the Macro model Financial Lifecycle:3. Accumulation Phase, Distribution Phase, Transfer Phase
  • 5. 2 The Confidence Builder Experience™ Fully coordinated and integrated planning. | www.faiadvisors.com OUR TWO BRAINS REACTIVE How we react to things1. Involuntary & Unconscious2. FEELING3. Be cautious of non-4. productive reactions REFLECTIVE The CEO of the Brain1. Must engage the logical2. thought process THINKING3. PUTTING IT TOGETHER—EXAMINING RISK “How somebody feels about taking risk in choosing between alternative courses of action which include the possibility of unfavorable outcomes”... relevant to how someone makes decisions.” “How somebody will subsequently feel if one of the possible unfavorable outcomes actually occurs ... relevant to how someone reacts to an event.” RISK Tolerance LOSS Tolerance 4 4
  • 6. 3 The strategic design™ This is an internal process where we apply our experience, knowledge, wisdom and understanding of current economic conditions to structure your financial portfolio. Our analysis covers a wide range of disciplines including technical and fundamental market analysis, dynamic financial strategies, and tactical planning to create a clear and concise Portfolio Blueprint™. Fully coordinated and integrated planning. | www.faiadvisors.com
  • 7. 4 your portfolio blueprint™ In this meeting we will discuss our process to manage the assets within your portfolio. A key focus here will be (1) to understand the mechanics of transitioning your assets from their current position to the one we specified in the Portfolio Blueprint™ and (2) to describe our ongoing management process. You want to feel confident and comfortable with knowing your assets are competently managed. Fully coordinated and integrated planning. | www.faiadvisors.com
  • 8. 4 YOUR PORTFOLIO BLUEPRINT™ Fully coordinated and integrated planning. | www.faiadvisors.com THE ASSET MANAGEMENT PROCESS VS. PROCESS/STRATEGY Flexibility / Change1. Customization2. Independence3. Long-term security,4. adapting as products change Education on economics5. and principles PRODUCTS/TOOLS Rigid1. Standardization2. Proprietary products3. Must always wait for4. a better product to be released Education on new products5.
  • 9. 4 YOUR PORTFOLIO BLUEPRINT™ Fully coordinated and integrated planning. | www.faiadvisors.com THE INVESTMENT PROCESS: HOW DECISIONS ARE MADE Starting Point: “Neutral” Managing Risk and Absolute Return Tactical Changes Away from Neutral Overweight, Target or Underweight Identify Holdings Cautious of Relative Returns 4 Common Sense 4 Growth or Value 4 Market-Cap4 Asset Class 4 To Manage Risk 4 Confidence Levels 4 Expense Awareness 4 Tax Awareness 4 3 Domestic Stocks 3 International Stocks 3 US Bonds 3 Intntl/Emerg Mkt Bonds 3 Alternatives 3 Only swing in the strike zone 3 Rebalancing via Thresholds 3 Funds/Managers 3 Taxable Accts or Retirement 3 Portfolio Size
  • 10. 5 The transition matrix™ This is an internal process at FAI Advisors. We will ensure the timely and efficient transition of your assets from their current locations to the one we specified in the Portfolio Blueprint™. Transitioning assets can be a daunting and sometimes anxious process for clients so we pay special attention to communicating with you on a regular basis to ensure a smooth transition. Fully coordinated and integrated planning. | www.faiadvisors.com
  • 11. 6 The Relationship advantage process™ The Relationship Advantage Process™ is ongoing and includes regular review and analysis on both our parts. The Initial Construction Review Conference begins our journey together. In this meeting we will: introduce FAI team members1. review final asset account transfers2. ensure online account access3. establish the review schedule4. outline the ongoing client communication elements5. Our goal is to provide you with understanding and peace of mind that your assets are cared for and your best interest is our primary concern. We will continue to meet on a regular basis to review your accounts and keep up with you and your circumstances. Fully coordinated and integrated planning. | www.faiadvisors.com