The document describes the portfolio management process of FAI Advisors. It involves 6 steps: 1) A risk assessment to understand the client's risk tolerance. 2) A meeting to build confidence and understand the client's relationship with money. 3) Developing a strategic portfolio design. 4) Creating a portfolio blueprint. 5) Efficiently transitioning the client's assets. 6) Establishing an ongoing review process to ensure the client's needs are met. The goal is to provide comprehensive planning and management of the client's portfolio.

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™
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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™
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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