Kevin P. Foley, ChFC ®, CLU® Luke A. Fields, Financial Advisor 450 W Wilson Bridge Rd Suite 100 Worthington, OH 43085 614-...
<ul><li>What Makes Us Unique? </li></ul><ul><li>Our Process </li></ul><ul><li>Your Wealth Strategy Team </li></ul>OVERVIEW
Our Mission To provide comprehensive, experienced advice to build, manage and preserve the wealth of our clients. Our Appr...
Our Financial Approach: Three Stages Financial Planning Portfolio Construction Analyze, Communicate and Educate
Stage 1: Financial Planning Analyze Develop Implement Monitor Define Goals, Financial and Life Asset Allocation Diversific...
This process is a dynamic, team-based endeavor. To be most effective it should include the client, relevant members of his...
Step 1: Analyze Communication is the key to a successful  investment management relationship. <ul><li>Discover </li></ul><...
Step 2: Develop Strategy Our success consists of developing a strategy focused on  financial planning, proper asset alloca...
Step 3: Implement One of our strengths is Portfolio Management. <ul><li>Proper Implementation </li></ul><ul><ul><li>Select...
Step 4: Monitor <ul><li>Continuous Monitoring </li></ul><ul><ul><li>Portfolio Progress </li></ul></ul><ul><ul><li>Adjustme...
Significant life events such as retirement and wealth transfer  are complex and  require careful planning .   Individual i...
Past performance is no guarantee of future results. Source: AllianceBernstein Investments. © 2006 DALBAR, Inc. This inform...
Additional Chart Disclosures •  The fact that buy-and-hold has been a successful strategy in the past does not guarantee t...
Source: Investment Company Institute. The categories listed above, Equity and Fixed Income, represent those funds categori...
The Market: Brutal Declines amid Long-Term Rise Past performance does not guarantee future results. No fees or expenses ar...
Source: AllianceBernstein Investments. 2005 Survey of Financial Advisors on Asset Allocation The Most Detrimental Investor...
Institutions: A Disciplined Process THE RESULT : Institutional investors generally stick to their investment plans, which ...
Institutions: A Disciplined Process Analyze Develop Implement Monitor Define Goals, Financial and Life Asset Allocation Di...
Source: Brinson, Beebower and associates, “Determinants of Portfolio Performance,” 1986, updated 1991 and 1995. Asset allo...
Asset Allocation Can Help Manage Risk
Index Descriptions
Our Financial Approach: Three Stages Financial Planning Portfolio Construction Analyze, Communicate and Educate
Stage 2: Portfolio Development A Disciplined Approach to Building and Preserving Wealth <ul><li>Step 1: Diversify Across A...
The Benefit of Low Correlation U.S.   Stocks (29.2)% (42.7) (14.2) (17.2) (29.6) (14.7) (13.4) (40.9) (25.2)% 2.2% 4.6 1.5...
Past performance does not guarantee future results. Diversification does not assure a profit or protect against a loss in ...
The Power of Diversification A B A and B 12% 10% 11% Average Annual  Return (26)% 30 2   50% (10) 20 Year 2 Year 1 Source:...
Portfolio Development A Disciplined Approach to Building and Preserving Wealth <ul><li>Step 1: Diversify Across Asset Clas...
Blend Growth and Value   Past performance does not guarantee future results. The chart above shows the average annual hist...
Blending Styles Adds Consistency Past performance does not guarantee future results. Rolling periods are measured from Jan...
Portfolio Development A Disciplined Approach to Building and Preserving Wealth <ul><li>Step 1: Diversify Across Asset Clas...
Large and Small Company Investing <ul><li>Past performance is no guarantee of future results.  •  An investment cannot be ...
Portfolio Development A Disciplined Approach to Building and Preserving Wealth <ul><li>Step 1: Diversify Across Asset Clas...
Stocks, Commodities, REITs and Gold Past performance is no guarantee of future results.  •  An investment cannot be made d...
Commodities in a Portfolio  <ul><li>Total return correlation 9/30/96 to 9/30/06 </li></ul>Past performance is no guarantee...
Commodities in a Hypothetical Portfolio     Performed Well When Interest Rates Increased,  12/31/75-12/31/05 Performance i...
Portfolio Development A Disciplined Approach to Building and Preserving Wealth <ul><li>Step 1: Diversify Across Asset Clas...
1970 2006 55% 45% 2030* 27% 73% Non-U.S. companies account for a growing share of the global market The Case for Global In...
Historical Risk/Return of Global Portfolios Past performance does not guarantee future results. Diversification does not g...
Global Diversification International Stocks Bonds US Style Blend Balanced Wealth  Asset Allocation The above is a hypothet...
Portfolio Development A Disciplined Approach to Building and Preserving Wealth <ul><li>Step 1: Diversify Across Asset Clas...
Importance of Rebalancing, 1988-2008 This art is for illustrative purposes only and not indicative of any investment. • An...
Disciplined Rebalancing: Buy Low and Sell High As an asset class/style outperforms, trim investment Buy Upper trigger Unde...
Portfolio Development A Disciplined Approach to Building and Preserving Wealth <ul><li>Step 1: Diversify Across Asset Clas...
Portfolio Development Tax-Management Techniques   AllianceBernstein L.P. does not provide tax advice. In considering this ...
Potential Added Return from Tax Management   Avoiding  Short-Term Gains Delaying  Long-Term Gains +77 b.p. +55 b.p. +22 b....
Distribution Planning Applying a systematic and disciplined strategy for income distribution is vital. <ul><li>Controllabl...
Sequence of Returns Matter Case Study Jim Investor Retirement Age  62  Retirement Savings   $2,000,000 Portfolio  Taxable ...
Sequence of Returns Matter Hypothetical Portfolio of 100% Large Cap Equities The investment profile is hypothetical, and t...
Foley & Foley Wealth Strategies Process Financial Planning Portfolio Construction Analyze, Communicate and Educate
Stage 3: Analyze, Communicate and Educate <ul><li>Monitor your Financial Plan </li></ul><ul><ul><li>“ Are We on Target?” <...
<ul><li>Review Meetings </li></ul><ul><ul><ul><li>Regular, periodic meetings </li></ul></ul></ul><ul><ul><ul><li>Quarterly...
<ul><li>Kevin P. Foley, ChFC ® , CLU ® </li></ul><ul><li>Founder and President, Foley & Foley Wealth Strategies </li></ul>...
Your Wealth Management Team   Private Money Managers Alternative Investment Specialist Insurance Specialists Corporate Tru...
OVERVIEW   The Raymond James Advantage •  Member of the Fortune 1000  •  Total client assets under administration  over $2...
Keys to Our Relationship Our goal: Your 100% satisfaction with the advice and service you receive. Disclosure Confidential...
Our Commitment to You  Since 1981, we have remained focused on our clients.  As professional, independent advisors with Ra...
Kevin Foley , ChFC Principal 614.431.4310 x105 Toll-Free: 877.854.0936 [email_address] foleywealthstrategies.com Gayle McK...
 
Compliance Disclosures Investing in small-cap stocks generally involves greater risks and, therefore, may not be appropria...
Kevin P. Foley, ChFC ®, CLU® Luke A. Fields, Financial Advisor 450 W Wilson Bridge Rd Suite 100 Worthington, OH 43085 614-...
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The Capabilities of Foley and Foley Wealth Strategies

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Foley & Foley Wealth Strategies: Our Philosophy, process, and why it is important to use a financial advisor.

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  • Transcript of "The Capabilities of Foley and Foley Wealth Strategies"

    1. 1. Kevin P. Foley, ChFC ®, CLU® Luke A. Fields, Financial Advisor 450 W Wilson Bridge Rd Suite 100 Worthington, OH 43085 614-431-4310 877-854-0936 www.foleywealthstrategies.com Foley & Foley Wealth Strategies is independent of Raymond James Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC RAYMOND JAMES INDIVIDUAL SOLUTIONS FROM INDEPENDENT ADVISORS
    2. 2. <ul><li>What Makes Us Unique? </li></ul><ul><li>Our Process </li></ul><ul><li>Your Wealth Strategy Team </li></ul>OVERVIEW
    3. 3. Our Mission To provide comprehensive, experienced advice to build, manage and preserve the wealth of our clients. Our Approach Since 1981, we have served our clients with a consultative, team-based approach that examines all aspects of their financial lives. We put our clients’ interests above our own or those of our firm. Our Objective To accomplish our mission profitably, while giving back to our community. What Makes Us Unique?
    4. 4. Our Financial Approach: Three Stages Financial Planning Portfolio Construction Analyze, Communicate and Educate
    5. 5. Stage 1: Financial Planning Analyze Develop Implement Monitor Define Goals, Financial and Life Asset Allocation Diversification Manager Selection Portfolio Construction Monitor and Rebalance A Disciplined Process
    6. 6. This process is a dynamic, team-based endeavor. To be most effective it should include the client, relevant members of his or her family, our team, select Raymond James specialists and outside professionals where appropriate. OVERVIEW Our Process Analyze In order to choose the proper wealth strategy of investments and services for your family, it is important for us to understand not only your current assets, but more importantly to understand you. We use a variety of tools including questionnaires and interviews to understand your personal goals, current financial situation, investment experience and risk tolerance. Develop Our team analyzes the information you share with us and designs solutions intended to help you reach your objectives. This step may involve collaboration with other specialists or your existing professionals. We present our recommendations to you, answer your questions, consider alternatives and outline the steps we need to take to implement your plan. Implement In this step, we execute your customized strategy using the extensive tools available to us through Raymond James. This involves the selection of specific account types, investment products and optional services; we then complete the necessary paperwork in a coordinated approach. Monitor One of our strengths is portfolio management. We daily monitor our clients’ investments and research economic trends. A key to this step is your involvement in the process and communication of any significant changes in your life. Through regular, periodic meetings with you, we will analyze the progress of your plan, and as needed, reposition the portfolio to reach your goals.
    7. 7. Step 1: Analyze Communication is the key to a successful investment management relationship. <ul><li>Discover </li></ul><ul><ul><li>“ How much is enough?” </li></ul></ul><ul><li>Define your Goals </li></ul><ul><li>Understand your: </li></ul><ul><ul><li>Current Assets and Insurance </li></ul></ul><ul><ul><li>Risk Tolerance </li></ul></ul><ul><ul><li>Tax Implications </li></ul></ul><ul><ul><li>Estate Planning </li></ul></ul>B A Seek to Fully Understand Where You Are Now Clarify and Plan Where You Want To Go
    8. 8. Step 2: Develop Strategy Our success consists of developing a strategy focused on financial planning, proper asset allocation and risk. <ul><li>Investment Proposal </li></ul><ul><ul><li>Asset Allocation </li></ul></ul><ul><ul><li>Diversification </li></ul></ul><ul><li>Income Needs </li></ul><ul><li>Insurance Strategy </li></ul><ul><li>Tax Strategy </li></ul><ul><li>Estate Planning </li></ul><ul><li>Coordination with Key </li></ul><ul><li>Advisors </li></ul>Every decision we make will be thoroughly explained and focused on achieving the results you want.
    9. 9. Step 3: Implement One of our strengths is Portfolio Management. <ul><li>Proper Implementation </li></ul><ul><ul><li>Selection of best investment managers </li></ul></ul><ul><ul><li>Due Diligence Research </li></ul></ul><ul><ul><ul><li>Raymond James </li></ul></ul></ul><ul><ul><ul><li>Industry Analysts </li></ul></ul></ul>
    10. 10. Step 4: Monitor <ul><li>Continuous Monitoring </li></ul><ul><ul><li>Portfolio Progress </li></ul></ul><ul><ul><li>Adjustment for life and market changes </li></ul></ul><ul><ul><li>Regular Face to Face Reviews </li></ul></ul>We thoroughly monitor our clients’ investments and research economic trends.
    11. 11. Significant life events such as retirement and wealth transfer are complex and require careful planning . Individual investors have historically underperformed relevant benchmarks and institutional investors . Emotional factors and natural biases lead individual investors to poor market timing decisions . Why Hire a Professional Financial Advisor?
    12. 12. Past performance is no guarantee of future results. Source: AllianceBernstein Investments. © 2006 DALBAR, Inc. This information is for illustrative purposes and seeks to demonstrate the virtues of a buy-and-hold strategy rather than trying to time the market. The calculations assume a $10,000 initial investment over the specified time period from 1984 through 2006. Lehman Aggregate Bond Index Average Bond Fund Investor Average Stock Fund Investor Inflation S&P 500 Individual Investors Have Underperformed Annualized Returns 1984-2006
    13. 13. Additional Chart Disclosures • The fact that buy-and-hold has been a successful strategy in the past does not guarantee that it will continue to be successful in the future. • The average (equity and fixed income) investor refers to the universe of all (equity or fixed income) mutual fund investors whose actions and financial results are restated to represent a single investor. Average (equity and fixed) investor returns are represented by a change in assets, excluding sales charges, redemptions and exchanges. • This method of calculation captures realized and unrealized capital gains, dividends, interest, trading costs, sales charges, fees, expenses and any other costs. • Equity performance is represented by the Standard & Poor's 500 Composite Index (an unmanaged index of 500 widely held stocks). Fixed Income performance is represented by the Lehman Brothers Aggregate Bond Index (an index which measures changes in the fixed rate debt issues rated investment grade or higher. The aggregate index is comprised of the government/corporate, the mortgage-backed securities and the asset-backed securities indices). • Inflation rate represents the monthly value of the consumer price index and is converted to a monthly rate. The monthly rates are used to compound a &quot;return&quot; for the period under consideration. • An investor cannot invest directly in an index. Index returns do not reflect the deduction of fees, trading costs or other expenses.
    14. 14. Source: Investment Company Institute. The categories listed above, Equity and Fixed Income, represent those funds categorized as such by the Investment Company Institute. There is no assurance that past trends will continue into the future. Investors Tend to Chase Investment Returns Net flows by broad investment categories at major inflection points in the market. Result: Many Investors Buy High and Sell Low 2000 2002 Stock Funds Stock Funds Bond Funds Bond Funds ($ billions) $140.50 $262.80 -$29.10 ($ billions) -$49.90
    15. 15. The Market: Brutal Declines amid Long-Term Rise Past performance does not guarantee future results. No fees or expenses are reflected in the performance of the index. An investor cannot invest directly in an index, and an index’s results are not indicative of any specific investment. Source: Compustat; Roger G. Ibbotson and Rex A. Sinquefield, “Stocks, Bonds, Bills, and Inflation: Year-by-Year Historical Returns,” University of Chicago Press Journal of Business (January 1976); and Bernstein Global Wealth Management Growth of $100,000 $55.0 mil . (15)% (30)% (17)% (43)% (29)% (16)% ( 22)% (15)% ( 41)% (15)% 50 59 68 77 87 96 05
    16. 16. Source: AllianceBernstein Investments. 2005 Survey of Financial Advisors on Asset Allocation The Most Detrimental Investor Mistakes Not paying enough attention to asset allocation 33% Having too much money in one investment 16% Buying overvalued investments 8% Other 1% Holding on to investments too long 11% Trying to time the market 31%
    17. 17. Institutions: A Disciplined Process THE RESULT : Institutional investors generally stick to their investment plans, which may give them a better chance at meeting goals.
    18. 18. Institutions: A Disciplined Process Analyze Develop Implement Monitor Define Goals, Financial and Life Asset Allocation Diversification Manager Selection Portfolio Construction Monitor and Rebalance
    19. 19. Source: Brinson, Beebower and associates, “Determinants of Portfolio Performance,” 1986, updated 1991 and 1995. Asset allocation does not ensure a profit or protect against a loss. Stock Selection 4.6% Why Asset Allocation Matters? Factors in Portfolio Volatility Asset Allocation Decisions 91.5% Market Timing 1.8% Other 2.1%
    20. 20. Asset Allocation Can Help Manage Risk
    21. 21. Index Descriptions
    22. 22. Our Financial Approach: Three Stages Financial Planning Portfolio Construction Analyze, Communicate and Educate
    23. 23. Stage 2: Portfolio Development A Disciplined Approach to Building and Preserving Wealth <ul><li>Step 1: Diversify Across Asset Classes </li></ul><ul><ul><li>Blend Growth and Value </li></ul></ul><ul><ul><li>Invest in Large and Small Company Stocks </li></ul></ul><ul><ul><li>Tangible Assets: REITs and Commodities </li></ul></ul><ul><li>Step 2: Globalize the Portfolio </li></ul><ul><li>Step 3: Rebalance Portfolio </li></ul><ul><li>Step 4: Tax Management </li></ul>Every Investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Investing involves risk and you may incur a profit or loss regardless of strategy selected. This material is not a recommendation to buy or sell any individual security or any combination of securities. Be sure to contact a qualified professional regarding your particular situation before making any investment.
    24. 24. The Benefit of Low Correlation U.S. Stocks (29.2)% (42.7) (14.2) (17.2) (29.6) (14.7) (13.4) (40.9) (25.2)% 2.2% 4.6 1.5 21.7 2.3 5.2 4.7 36.5 9.8% Dec 68–Jun 70 Jan 73–Sep 74 Jan 77–Feb 78 Dec 80–Jul 82 Sep 87–Nov 87 Jun 90–Oct 90 May 98–Aug 98 Apr 00–Mar 03 Average Past performance does not guarantee future results. U.S. stocks are represented by the S&P 500 Index with monthly dividends reinvested. Bonds are represented by five-year U.S. Treasury bonds. Treasury securities provide fixed rates of return as well as principal guarantees if held to maturity. Investment returns and principal value of a mutual fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. No fees or expenses are reflected in the performance of the index. An investor cannot invest directly in an index, and an index’s results are not indicative of any specific investment .Source: Center for Research in Security Prices, Standard & Poor’s U.S. Bonds
    25. 25. Past performance does not guarantee future results. Diversification does not assure a profit or protect against a loss in a declining market. Correlation with the stock market is a measure of the standard deviation of various benchmarks to the Russell 3000, a common measure of the performance of the broad U.S. stock market. The indexes used to represent each asset class were: U.S. Growth Stocks: Russell 3000 Growth Index; U.S. Value Stocks: Russell 3000 Value Index; U.S. Small-Cap Stocks: Russell 2000 Index; International Stocks: MSCI EAFE Index; REITs: National Association of Real Estate Investment Trusts (NAREIT) Index; Intermediate-Term Bonds: Lehman Brothers Aggregate Bond Index; Short-Term Bonds: Merrill Lynch 1-3 Year Treasury Index. Cash: Citigroup 3-Month Treasury-Bill. T-Bills provide fixed rates of return as well as principal guarantees if held to maturity. Source: Zephyr Style Advisor, Russell Investment Group, Lehman Brothers, Merrill Lynch, MSCI, NAREIT and AllianceBernstein December 31, 2007 US Growth International US Value Short-Term Bonds REITs No Correlation 0 High Correlation 1.0 1985–2007 US Small-Cap Intermediate-Term Bonds High Yield Diversify Across Asset Classes
    26. 26. The Power of Diversification A B A and B 12% 10% 11% Average Annual Return (26)% 30 2 50% (10) 20 Year 2 Year 1 Source: AllianceBernstein. Diversification does not assure a profit or protect against a loss in a declining market. This is a hypothetical example. $ 100 Year 1 Year 2 $ 111 A $ 117 B $ 122 A and B
    27. 27. Portfolio Development A Disciplined Approach to Building and Preserving Wealth <ul><li>Step 1: Diversify Across Asset Classes </li></ul><ul><ul><li>Blend Growth and Value </li></ul></ul><ul><ul><li>Invest in Large and Small Company Stocks </li></ul></ul><ul><ul><li>Tangible Assets: REITs and Commodities </li></ul></ul><ul><li>Step 2: Globalize the Portfolio </li></ul><ul><li>Step 3: Rebalance Portfolio </li></ul><ul><li>Step 4: Tax Management </li></ul>Every Investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Investing involves risk and you may incur a profit or loss regardless of strategy selected. This material is not a recommendation to buy or sell any individual security or any combination of securities. Be sure to contact a qualified professional regarding your particular situation before making any investment.
    28. 28. Blend Growth and Value Past performance does not guarantee future results. The chart above shows the average annual historical return of investments in “growth” stocks, as represented by the Russell 3000 Growth Index, and “value” stocks, as represented by the Russell 3000 Value Index. These returns do not include fees and expenses associated with an investment in a mutual fund. An investor cannot invest directly in an index, and its results are not indicative of any specific investment, including any Alliance Bernstein mutual fund. Please see end of presentation for index definitions. Source: Russell Investment Group and Alliance Bernstein Annualized Returns Value Stocks Growth Stocks 80 81–88 89–91 92–93 94–99 00–06
    29. 29. Blending Styles Adds Consistency Past performance does not guarantee future results. Rolling periods are measured from January 1, 1970 through December 31, 2006 The 50/50 growth and value composite is a hypothetical composite comprising 50% of the Citigroup/PMI Growth Index and 50% of the Citigroup/PMI Value Index. The 50/50 portfolio is rebalanced monthly, as necessary, to maintain its growth and value proportions; transaction charges for rebalancing are not taken into account An investor cannot invest directly in an index, and its results are not indicative of any specific investment. Please see end of presentation for index definitions. Source: Citigroup, Fama/French, Standard & Poor’s and AllianceBernstein % of Time Rebalanced 50/50 Blend Outperformed the S&P 500 1970–2006 Rolling Periods Observations 432 409 385 325
    30. 30. Portfolio Development A Disciplined Approach to Building and Preserving Wealth <ul><li>Step 1: Diversify Across Asset Classes </li></ul><ul><ul><li>Blend Growth and Value </li></ul></ul><ul><ul><li>Invest in Large and Small Company Stocks </li></ul></ul><ul><ul><li>Tangible Assets: REITs and Commodities </li></ul></ul><ul><li>Step 2: Globalize the Portfolio </li></ul><ul><li>Step 3: Rebalance Portfolio </li></ul><ul><li>Step 4: Tax Management </li></ul>Every Investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Investing involves risk and you may incur a profit or loss regardless of strategy selected. This material is not a recommendation to buy or sell any individual security or any combination of securities. Be sure to contact a qualified professional regarding your particular situation before making any investment.
    31. 31. Large and Small Company Investing <ul><li>Past performance is no guarantee of future results. • An investment cannot be made directly in an index. • Hypothetical value of $1 invested at the beginning of 1980. Assumes reinvestment of income and no transaction costs or taxes. This is for illustrative purposes only and not indicative of any investment. • Source: Created by Raymond James using Ibbotson Presentation Materials ©2009 Morningstar, Inc. All rights reserved. Used with permission. </li></ul>Hypothetical value of $1 invested at year-end 1968. Assumes reinvestment of income and no transaction costs or taxes. Year-End 1980 – 2008 $100 10 1 0.60 1980 1985 1990 1995 2000 2005 $41.28 $26.56 $8.51 $6.82 13.7% 12.0 7.7 6.8 Compound Annual Return Small Value Large Value Large Growth Small Growth
    32. 32. Portfolio Development A Disciplined Approach to Building and Preserving Wealth <ul><li>Step 1: Diversify Across Asset Classes </li></ul><ul><ul><li>Blend Growth and Value </li></ul></ul><ul><ul><li>Invest in Large and Small Company Stocks </li></ul></ul><ul><ul><li>Tangible Assets: REITs and Commodities </li></ul></ul><ul><li>Step 2: Globalize the Portfolio </li></ul><ul><li>Step 3: Rebalance Portfolio </li></ul><ul><li>Step 4: Tax Management </li></ul>Every Investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Investing involves risk and you may incur a profit or loss regardless of strategy selected. This material is not a recommendation to buy or sell any individual security or any combination of securities. Be sure to contact a qualified professional regarding your particular situation before making any investment.
    33. 33. Stocks, Commodities, REITs and Gold Past performance is no guarantee of future results. • An investment cannot be made directly in an index. • Hypothetical value of $1 invested at the beginning of 1980. Assumes reinvestment of income and no transaction costs or taxes. This is for illustrative purposes only and not indicative of any investment. • Source: Created by Raymond James using Ibbotson Presentation Materials ©2009 Morningstar, Inc. All rights reserved. Used with permission. Hypothetical value of $1 invested at year-end 1985. Assumes reinvestment of income and no transaction costs or taxes. $100 0.50 1 1980 10 1985 1995 2000 $1.66 $19.30 $13.94 $6.39 $14.65 2005 1990 1980 – 2008 10.7% 9.7 9.5 6.6 1.8 Compound Annual Return U.S. Stocks REITs International Stocks Commodities Gold
    34. 34. Commodities in a Portfolio <ul><li>Total return correlation 9/30/96 to 9/30/06 </li></ul>Past performance is no guarantee of future results. Source: Morningstar, Inc. as of 9/30/06. Correlation is a measure of the degree to which two variables are related. Commodities are represented by the GSCI. US stocks, real estate, international stocks, bonds and cash are represented by the S&P 500, MSCI US REIT Index, MSCI EAFE Index, Lehman Brothers Aggregate Bond Index and the 3-month Treasury bill, respectively.It is not possible to invest directly in an index. Index returns assume reinvestment of all distributions and do not reflect the expenses, fees or taxes of managing a mutual fund. A figure of 1.0 equals perfect positive correlation. A figure of -1.0 equals a total negative correlation. Historically Low Correlation with Other Asset Classes
    35. 35. Commodities in a Hypothetical Portfolio Performed Well When Interest Rates Increased, 12/31/75-12/31/05 Performance is historical and does not guarantee future results. The graph above is for illustrative purposes only and does not represent the performance or risk of any DWS product. Source: Morningstar, Inc., as of 12/31/05. Stocks and bonds are represented by the S&P 500 Index and the Lehman Brothers Aggregate Bond Index, respectively. Commodities are represented by the Goldman Sachs Commodities Index. The indices include reinvestment of all distributions and do not reflect the fees, taxes or expenses involved in managing a mutual fund. It is not possible to invest directly in an index. 20.6% 15.2% 11.5% 13.4% 2.4% 7.3% 0% 5% 10% 15% 20% 25% Years when interest rates declined Years when interest rates increase Commodities Stocks Bonds
    36. 36. Portfolio Development A Disciplined Approach to Building and Preserving Wealth <ul><li>Step 1: Diversify Across Asset Classes </li></ul><ul><ul><li>Blend Growth and Value </li></ul></ul><ul><ul><li>Invest in Large and Small Company Stocks </li></ul></ul><ul><ul><li>Tangible Assets: REITs and Commodities </li></ul></ul><ul><li>Step 2: Globalize the Portfolio </li></ul><ul><li>Step 3: Rebalance Portfolio </li></ul><ul><li>Step 4: Tax Management </li></ul>Every Investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Investing involves risk and you may incur a profit or loss regardless of strategy selected. This material is not a recommendation to buy or sell any individual security or any combination of securities. Be sure to contact a qualified professional regarding your particular situation before making any investment.
    37. 37. 1970 2006 55% 45% 2030* 27% 73% Non-U.S. companies account for a growing share of the global market The Case for Global Investing Source: Standard & Poor’s; Morgan Stanley Capital International. U.S. companies represented by of the S&P 500 ® Index. 1 Non-U.S. companies represented by of the MSCI EAFE ® 1 Index. Index performance is hypothetical and is shown for illustrative purposes only. You cannot invest directly in an index. *Projected data for the year 2030 are calculated using the rate of growth since 1970. <ul><li>Non U.S. Companies </li></ul><ul><li>U.S. Companies </li></ul>34% 66%
    38. 38. Historical Risk/Return of Global Portfolios Past performance does not guarantee future results. Diversification does not guarantee a profit or protect against a loss. Through December 31, 2006 US Stocks are represented by the S&P 500 Index of stocks. Foreign stocks are represented by the MSCI (Morgan Stanley Capital International) EAFE Index. The chart presents various combinations of the US and Foreign Stock components, including the highlighted 70% U.S/30% foreign combination. Volatility is defined as the annualized standard deviation of portfolio returns for the period from 1970 to 2006. An investor cannot invest directly in an index, and its results are not indicative of any specific investment. Source: MSCI, Standard & Poor’s and AllianceBernstein 1970−2006 % in international stocks Lower volatility Volatility (%)
    39. 39. Global Diversification International Stocks Bonds US Style Blend Balanced Wealth Asset Allocation The above is a hypothetical illustration only and is not intended to represent any particular investment. The asset allocation that is right for each individual will vary. Geographic Mix Multiple Levels of Diversification 30% Int'l 70% US 50% Growth 50% Value 50% Growth 50% Value
    40. 40. Portfolio Development A Disciplined Approach to Building and Preserving Wealth <ul><li>Step 1: Diversify Across Asset Classes </li></ul><ul><ul><li>Blend Growth and Value </li></ul></ul><ul><ul><li>Invest in Large and Small Company Stocks </li></ul></ul><ul><ul><li>Tangible Assets: REITs and Commodities </li></ul></ul><ul><li>Step 2: Globalize the Portfolio </li></ul><ul><li>Step 3: Rebalance Portfolio </li></ul><ul><li>Step 4: Tax Management </li></ul>Every Investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Investing involves risk and you may incur a profit or loss regardless of strategy selected. This material is not a recommendation to buy or sell any individual security or any combination of securities. Be sure to contact a qualified professional regarding your particular situation before making any investment.
    41. 41. Importance of Rebalancing, 1988-2008 This art is for illustrative purposes only and not indicative of any investment. • An investment cannot be made directly in an index. Past performance is no guarantee of future results. March 1, 2006 • Source: Created by Raymond James using Ibbotson Presentation Materials © 2006 Ibbotson Associates, Inc. All rights reserved. Used with permission. Stocks: 50% large- and 50% small-company stocks. Bonds: intermediate-term government bonds. 50% 50% 53% 47% 67% 33% 67% 33% 58% 42% 0 10 20 30 40 50 60 70% • Stock Allocation • Bond Allocation 2003 2008 1998 1993 1988 Year End
    42. 42. Disciplined Rebalancing: Buy Low and Sell High As an asset class/style outperforms, trim investment Buy Upper trigger Underperform Strategic target Outperform Sell Lower trigger As an asset class/style underperforms, add to investment
    43. 43. Portfolio Development A Disciplined Approach to Building and Preserving Wealth <ul><li>Step 1: Diversify Across Asset Classes </li></ul><ul><ul><li>Blend Growth and Value </li></ul></ul><ul><ul><li>Invest in Large and Small Company Stocks </li></ul></ul><ul><ul><li>Tangible Assets: REITs and Commodities </li></ul></ul><ul><li>Step 2: Globalize the Portfolio </li></ul><ul><li>Step 3: Rebalance Portfolio </li></ul><ul><li>Step 4: Tax Management </li></ul>Every Investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Investing involves risk and you may incur a profit or loss regardless of strategy selected. This material is not a recommendation to buy or sell any individual security or any combination of securities. Be sure to contact a qualified professional regarding your particular situation before making any investment.
    44. 44. Portfolio Development Tax-Management Techniques AllianceBernstein L.P. does not provide tax advice. In considering this message, you should discuss your individual circumstances with your tax advisor before making any decisions. <ul><li>Basic </li></ul><ul><li>Own Municipal Bonds, not Taxable </li></ul><ul><li>Keep turnover low </li></ul><ul><li>Avoid short-term gains </li></ul><ul><li>Harvest losses to offset gains </li></ul><ul><li>on stocks and bonds </li></ul><ul><li>Advanced </li></ul><ul><li>Track holdings by tax lot </li></ul><ul><li>Sell individual tax lots with the least tax cost </li></ul><ul><li>Avoid wash sales </li></ul>
    45. 45. Potential Added Return from Tax Management Avoiding Short-Term Gains Delaying Long-Term Gains +77 b.p. +55 b.p. +22 b.p. Total Potential Added Return From Tax-Savvy Investing Past performance does not guarantee future results. Based on a simulation of after-tax returns (assuming 2007 tax rates) over nearly three decades for a portfolio using Bernstein Global Wealth Management's actual research for the relevant period and current portfolio management techniques for Bernstein’s Strategic Value portfolios. This does not represent any past performance and is not a promise of actual future results. Source: AllianceBernstein The Benefit of Tax Management
    46. 46. Distribution Planning Applying a systematic and disciplined strategy for income distribution is vital. <ul><li>Controllable </li></ul><ul><li>Consistency of Returns </li></ul><ul><ul><li>The volatility of returns </li></ul></ul><ul><li>Withdrawal Rate </li></ul><ul><ul><li>How much to distribute </li></ul></ul><ul><li>Method of Distribution </li></ul><ul><ul><li>Order of which accounts </li></ul></ul><ul><ul><li>Tax implications </li></ul></ul><ul><li>Uncontrollable </li></ul><ul><li>Sequence of Returns </li></ul><ul><ul><li>Order of which returns are earned </li></ul></ul>
    47. 47. Sequence of Returns Matter Case Study Jim Investor Retirement Age 62 Retirement Savings $2,000,000 Portfolio Taxable account $1,000,000 Tax-deferred $1,000,000 Desired Income $150,000 (pre-tax) per year adjusted for the previous year’s inflation rate Time Period 20 years (1983-02) Illustrates the impact of the timing of returns. Investment Portfolio 100% large cap equities (S&P 500 index)
    48. 48. Sequence of Returns Matter Hypothetical Portfolio of 100% Large Cap Equities The investment profile is hypothetical, and the asset allocations are presented only as examples and are not intended as investment advice. Please consult your financial advisor if you have questions about these examples and how they relate to your own financial situation. Illustrates the impact of the timing of returns. $2,000,000 $2,000,000 Portfolio Start Value Returns in actual order 1983-2002 Returns in Reverse order 2002-1983 Total Income 20 years $4,259,829 $2,579,988 Average Annual Return 12.71% 12.71% Standard Deviation 16.91 16.91 Ending Value $8,641,985 $0 Increase in Ending Value Due to Sequence of Returns $8,641,985
    49. 49. Foley & Foley Wealth Strategies Process Financial Planning Portfolio Construction Analyze, Communicate and Educate
    50. 50. Stage 3: Analyze, Communicate and Educate <ul><li>Monitor your Financial Plan </li></ul><ul><ul><li>“ Are We on Target?” </li></ul></ul><ul><li>Monitor your Investments </li></ul><ul><ul><li>Review Global Financial Markets </li></ul></ul><ul><ul><li>Evaluate Managers vs. Peers & Benchmarks </li></ul></ul><ul><ul><li>Rebalance Portfolio </li></ul></ul><ul><ul><li>Maximize After-Tax Returns </li></ul></ul><ul><li>Commitment to Communication </li></ul>Our mission is to provide comprehensive, experienced advice to build, manage and preserve the wealth of our clients.
    51. 51. <ul><li>Review Meetings </li></ul><ul><ul><ul><li>Regular, periodic meetings </li></ul></ul></ul><ul><ul><ul><li>Quarterly Newsletter </li></ul></ul></ul><ul><ul><ul><li>Regular Emails </li></ul></ul></ul><ul><ul><ul><li>Personal Notes </li></ul></ul></ul><ul><ul><li>Coordination between Key Advisors </li></ul></ul><ul><ul><ul><li>CPA </li></ul></ul></ul><ul><ul><ul><li>Estate Attorney </li></ul></ul></ul><ul><li>Client Education </li></ul><ul><ul><ul><li>Client Workshops: Economic and Market Update </li></ul></ul></ul><ul><ul><ul><li>Analyst Outlook and Insight </li></ul></ul></ul><ul><ul><ul><li>Appreciation Events </li></ul></ul></ul>Commitment to Communication Communication is the key to a successful investment management relationship.
    52. 52. <ul><li>Kevin P. Foley, ChFC ® , CLU ® </li></ul><ul><li>Founder and President, Foley & Foley Wealth Strategies </li></ul><ul><li>Registered Principal, RJFS </li></ul><ul><li>28 years of industry experience, including 11 years with Raymond James </li></ul><ul><li>Responsible for investment management and business development </li></ul><ul><li>Enjoys traveling, racquetball and spending time with family and grandkids </li></ul><ul><li>Coached wrestling for 11 years, from 1997-2008 </li></ul><ul><li>Kevin is an active member in his church, serving as an Elder </li></ul><ul><li>Luke A. Fields </li></ul><ul><li>Vice President, Foley & Foley Wealth Strategies </li></ul><ul><li>Financial Advisor, RJFS </li></ul><ul><li>Responsible for financial planning and investment management </li></ul><ul><li>BSBA, The Ohio State University, Fisher College of Business </li></ul><ul><li>Enjoys all athletics, traveling and spending time with his growing family </li></ul><ul><li>Luke is an active member in his church, serving in Leadership, as an Usher and on the Finance Committee </li></ul>Foley & Foley Wealth Strategies
    53. 53. Your Wealth Management Team Private Money Managers Alternative Investment Specialist Insurance Specialists Corporate Trust Services Concentrated Stock Specialist Trading and Research Private Client and Family CPA Attorney Raymond James Raymond James Financial Advisors at
    54. 54. OVERVIEW The Raymond James Advantage • Member of the Fortune 1000 • Total client assets under administration over $214.8 billion* • Asset management subsidiaries manage in excess of $37.1 billion* of financial assets for individuals, pension plans and municipalities. • 3,500 support associates located in corporate locations • Raymond James has more than 2,200 branch locations throughout the United States, Canada and overseas. The firm also maintains an array of affiliated international offices including Paris, Nice, Cannes, Brussels, Buenos Aires, Dusseldorf, Stuttgart, Luxembourg, Geneva, Lausanne, Istanbul and Montevideo. *As of 12/31/07 Raymond James: A Firm With Substantial Size
    55. 55. Keys to Our Relationship Our goal: Your 100% satisfaction with the advice and service you receive. Disclosure Confidentiality Communication Referrals <ul><li>In order for us to give you our best service, it is critical that you be as forthright as possible, providing us with complete and accurate information. </li></ul><ul><li>In disclosing this information, you can be assured that we take stringent measures to protect your privacy. </li></ul><ul><li>The success of our long-term relationship, and your long-term investment experience, depends on our maintaining an open, ongoing dialogue. </li></ul><ul><li>We will communicate with you regularly, openly and honestly about your financial plan, including fee schedules. </li></ul><ul><li>If you have a question or concern about the management of your account, your statement, your fees, or just something you heard from a friend, contact us about it. We are here to help. </li></ul><ul><li>We focus the majority of our time on our clients, and we are very selective in building our client base. We depend on our best clients to help us grow and maintain a high-quality practice by introducing us to people just like themselves. </li></ul>
    56. 56. Our Commitment to You Since 1981, we have remained focused on our clients. As professional, independent advisors with Raymond James, our concentration is centered on your best interests. The world in which we live, especially the investment world, will constantly change. Our commitment at Foley & Foley Wealth Strategies will not.
    57. 57. Kevin Foley , ChFC Principal 614.431.4310 x105 Toll-Free: 877.854.0936 [email_address] foleywealthstrategies.com Gayle McKearin Director of Client Relationships 614.431.4310 x104 Toll-Free: 877.854.0936 [email_address] Luke Fields Financial Advisor 614.431.4310 x113 Toll-Free: 877.854.0936 [email_address] foleywealthstrategies.com Sandy Farner Administrative and Service Associate 614.431.4310 x108 Toll-Free: 877.854.0936 [email_address] Securities offered through Raymond James Financial Services, Inc ., member FINRA/SIPC Anne Lonsway Receptionist 614.431.4310 Toll-Free: 877.854.0936 Independent Firm
    58. 59. Compliance Disclosures Investing in small-cap stocks generally involves greater risks and, therefore, may not be appropriate for every investor. Please note that international investing involves special risks, including currency fluctuations, different financial accounting standards, and possible political and economic volatility. U.S. government bonds and Treasury bills are guaranteed by the U.S. government and, if held to maturity, offer a fixed rate of return and guaranteed principal value. U.S. government bonds are issued and guaranteed as to the timely payment of principal and interest by the federal government. Treasury bills are certificates reflecting short-term (less than one year) obligations of the U.S. government. Standard deviation measures the fluctuation of returns around the arithmetic average return of investment. The higher the standard deviation, the greater the variability (and thus risk) of the investment returns. Diversification does not ensure a profit or guarantee against a loss. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. High-yield (below investment grade) bonds are not suitable for all investors. When appropriate, these bonds should only comprise a modest portion of your portfolio. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate and complete. Past performance is not a guarantee of future results. Any opinions are those of Kevin Foley and Luke Fields and not necessarily those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. Keep in mind that there is no assurance that any recommendation or strategy will ultimately be successful or profitable not protect against a loss. Investments or strategies discussed may not be suitable for all investors.
    59. 60. Kevin P. Foley, ChFC ®, CLU® Luke A. Fields, Financial Advisor 450 W Wilson Bridge Rd Suite 100 Worthington, OH 43085 614-431-4310 877-854-0936 www.foleywealthstrategies.com Foley & Foley Wealth Strategies is independent of Raymond James Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC RAYMOND JAMES INDIVIDUAL SOLUTIONS FROM INDEPENDENT ADVISORS
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