Our Implementation Process

How can we help you build a custom portfolio based on passive asset class investing? There is no one right portfolio, just one that is right for you.

A DWM representative would be happy to discuss the details related to your unique needs when you contact us. Following is a summary of the key building blocks we use:

Step One

Establish a relationship with Dopkins as your trusted, fee-only registered investment advisor. You can learn more about how Dopkins adds value as you implement your investment approach by visiting our Firm Profile.

Step Two

Learn how passive asset class investing helps you achieve your financial objectives, define your personal investment policy, based upon your risk profile.

The better you understand the key factors that contribute to or detract from investment returns, the greater your odds are for enjoying a successful investment experience. Dopkins provides ongoing education and advice, so you can more easily make informed decisions about a policy that makes sense for you.

For example, volumes of research have indicated that you can expect to be compensated with a risk premium when you incorporate riskier asset classes within your portfolio. But how much risk is too much risk?

• Your ability to take risk - When do you plan to spend your assets?
• Your willingness to take risk - How well will you be able to "stay the course" when the market is doing poorly or when your portfolio doesn't resemble standard market indices such as the S&P 500?
• Your need to take risk - How are you doing so far? If you're already near or at your objectives, don't risk losing them.
• What is most important to you - For example, if you are not by nature a risk-taker, but your need to accept risk is high, your Dopkins advisor can help you assess how to address this conflict.

Step Three

Construct your portfolio

The advantage of accepting portfolio risk as part of your personal investment policy is its expected premiums. A disadvantage of risk is the volatility it can create in your portfolio (which can tempt you to abandon your carefully designed investment policy). Diversification is the key to managing volatility.

Based on your risk profile, your Dopkins advisor helps you construct a globally diversified portfolio that contains an appropriate measure of some or all of the following asset classes:

• Stocks of domestic and international companies
• Stocks of small, large, distressed and glamour companies (small-cap, large-cap, value and growth)
• Fixed income
• Additional asset classes such as emerging market stocks, real estate and commodities

For investing in equity (stock) asset classes, you can typically turn to mutual funds that best capture these primary characteristics:

• Passively managed - tracking an asset class or index rather than attempting to pick winning securities or time future market movements
• Low-cost
• Tax efficient - for taxable accounts

For fixed income investing, you can incorporate funds with similar characteristics. Or your Dopkins advisor may suggest the construction of a custom bond portfolio based strictly on high-quality individual bonds structured to meet your income flow and/or risk management needs.

Step Four

Rebalance/maintain your portfolio; periodically assess your objectives and determine when carefully planned restructuring may make sense.

Over time, a properly constructed, diversified portfolio is likely to move out of balance as each asset class you own performs better or worse than the rest of your holdings. When appropriate, your Dopkins advisor helps you restore your portfolio to its original asset allocations and risk profile.

• Rebalancing has the added advantage of implementing a "buy low and sell high" discipline when you sell your recent outperforming (overweight) asset classes and purchase recent underperforming (underweight) asset classes. But transaction costs and the potential tax impact must be considered as part of the process, so consider having Dopkins help you incorporate the following strategies:
  • Rebalancing with existing holdings only when significant adjustments are needed
  • Taking advantage of new assets to rebalance whenever possible
  • Implementing tax-management techniques such as rebalancing within tax-deferred accounts, tax-loss harvesting, and avoiding short-term capital gains.

Beyond periodic rebalancing there also may be times when major life changes cause you to reassess your guiding objectives. Events such as births, deaths, marriage, divorce, career changes or retirement may require you to revisit your original financial objectives and risk profile (your willingness, ability and need to accept risk), which may in turn result in a need to adjust your plans and/or reallocate your portfolio.

Dopkins can assist you throughout your relationship with us in determining when such changes may make sense (and when they may not), and how to implement them logically, cost-effectively and with tax considerations in mind.

Step Five

Enjoy the fruits of our labor!

Enjoying life. There's an ingredient that is too often overlooked in the serious world of financial services. Yet we cannot overemphasize that the primary objective of investing is not just to accumulate wealth, but rather to achieve your life's goals. That is why your and your family's lifelong dreams and visions remain an integral part of our investment advice to you every step of the way.

Interested in an Overview?

For more information regarding Dopkins Wealth Management, LLC, please contact Brian G. Cannon

Achieving Results ... People to People