Every RIA has their own style when it comes to investment management. Most firms use some form of a buy/hold platform based on the Modern Portfolio Theory. Most firms are fairly secular in their offering (stocks, mutual funds, bonds).
Some firms manage the money “in house” and some firms outsource the management to professional 3rd party managers. Most firms focus on rate of returns and focus too little on risk.
POM Planning’s philosophy is fairly simple:
We want to help clients find the best risk-adjusted returns possible and
we will use multiple resources to help accomplish this goal.
-POM uses the best 3rd party managers we can find to manage money “in the market.”
-POM uses tools like FIAs and IULs as asset classes to help clients mitigate risk.
-POM embraces the use of Artificial Intelligence (AI) when doing so helps accomplish our goals.
Tactical/active money management
Our 3rd party managers are not all tactical, but most of them are. All of them have different proprietary styles, processes, and algorithms they use to try to mitigate risk. When combining multiple managers in a portfolio, we believe this puts clients in the optimal environment to generate the best expected rates of return with the least amount of risk.
Diversification and portfolio construction
When most firms construct “diversified” portfolios, that usually means putting money into multiple asset classes/categories (large cap, small cap, international, utilities, financials, etc.).
For the last 10+ years, “diversified” portfolios have lagged that of focused investing (holding a limited amount of stocks chosen for growth).
Our diversification comes when we diversify using different styled 3rd party managers with a combination of FIAs and IULs to reduce risk and AI when appropriate.
Our model portfolios are constructed by a team that is led by Joseph Maas, CFA, CFP®, ChFC, CLU®, MSFS, CVA, ABAR, CM&AA, CCIM.
Click here to learn about our model portfolios.
If you are not working with POM Planning and would like to learn more about how our platform can help you grow your business and provide better/more suitable advice in the process, click here.