The relationship with Heritage Investors begins with a phone call. Once we’ve had our initial phone meeting and agree that working with one another is in each other’s best interest, we begin the process. Our Investment Portfolio Management process consists of two aspects: pre-management and actual management. Pre-management is used to determine your goals, set expectations, and start building your accounts. Management is what happens behind the scenes once we’ve taken control. You can rest assured that we are building and managing your accounts according to the goals established in the pre-management process. At Heritage Investors, we take our fiduciary obligation to our clients very seriously and we are always working with their best interests in mind.
The Pre-Management Process
Initial Phone Meeting
We will start our relationship with a short initial phone meeting to determine what you are looking to accomplish and to set expectations. During this phone call, you will share your specific financial goals with us, and we will discuss their feasibility and quantify how to reach them. If everyone feels comfortable with the new relationship, and we all agree to move forward, the process can officially begin.
Data Gathering/Risk Assessment
At this time, we will have you fill out our profile questionnaire and request select financial information. Depending on your specific circumstances, we may request additional information like investment statements, tax returns, insurance declaration pages, or even a budget.
During this meeting, we cover the findings of what we have gleaned from our data gathering and risk assessment. Due to the strategic nature of these meetings, we do require all decision-makers at this and other planning meetings.
For Heritage Investors to gain access to your existing accounts, you will need to fill out an Engagement Agreement (fiduciary agreement). This paperwork is required for us to begin the process of opening your new accounts and transferring the funds to them.
Open Accounts/Transfer Funds
Once the appropriate paperwork is completed it is sent to our custodian TD Ameritrade, accounts will be opened, and funds transferred in. After the funds are deposited, you will receive login information to all online portals allowing you access to all of your accounts.
Please note, the transfer of funds can take as little as three days, or as long as two months. Also, all funds will be housed at the custodian TD Ameritrade. Heritage Investors does not hold your money.
The Portfolio Management Process
After all the preliminary work is complete, the professionals at Heritage Investors take over.
Using the numbers from the Data Gathering and Risk Tolerance meetings in conjunction with information from the discussions during our Goal Setting meeting, we will check to see that your current portfolio risk aligns with the goals that you outlined.
This is a step in the process when we will look at your portfolio’s quality to see if there is room for improvement within the underlying holdings. Taking the data from your statements, we enter it into our systems to see if it can be improved. Is there a cost improvement? Can we get the same allocation at a lower cost? Is there a quality improvement? Are there higher quality, higher ranking assets we can buy in the same class?
An adjustment means rebuilding the portfolio and buying new assets. This may potentially mean a complete overhaul of your portfolio, or we may need to make tactical moves if there are issues like tax constraints. For example, consider a portfolio that has $600,000 in unrealized taxable gains. We may have to tactically rebuild the portfolio over the course of a couple of years. Due to tax constraints, we might want to make small changes to your portfolio. However, if it is an IRA, we may need to make major changes and completely start over with a new portfolio.
Monitor/Review – Target Band Rebalancing
As life happens, your needs and even your desires may change. Heritage Investors will constantly adjust our direction to make sure you are staying on your path moving toward the desired goals. By planning and staying proactive, you have a better chance of succeeding in reaching those goals than someone who simply reacts to changes as they arise.
Other adjustments might also need to be made as the market moves. During this time, changes might be made in order to keep the portfolio allocation's numbers driving toward the goals we discussed in the Goal Setting meeting. We may need to sell all of a certain position and replace it with a different one in order to keep your portfolio balanced and driving toward your financial goals.
Semi-Annual Portfolio Review Meeting
This meeting is designed to ensure you have access to all of your accounts, you’re getting your statements and newsletters, make sure you understand your completed portfolio, and to adjust the portfolio in relation to any particular life changes which may have occurred. We then monitor the portfolio to align with your life goals.
As with other planning meetings, we request that all decision-makers attend this meeting.
Just one of the many ways we feel your trust is gained is by being 100% transparent about the fee structures. Click to learn about our Portfolio Management fee structure.