We've talked about the concepts of what we're aiming to do in portfolio construction,  but how do we get it done practically?  Once you decide to use HCM's services, HCM will:

1) Analyze Your Current Financial Situation. 

We begin by taking an accounting of your current financial assets, debts, living expenses, income, and expected future income.  We then look at your estimates for future inflows (e.g. inheritances, home downsizing) and outflows (e.g. kids' college, vacation home).  Finally we discuss the financial state to which you aspire and the risk profile associated with various expected returns. 

2) Create and Implement an Investment Plan.

After analyzing your individual tolerance to risk, we can determine an Investment Plan for your portfolio to get you where you want to go.  Together, we'll map out the individual trades that get your portfolio into position to maximize its return for your risk profile.

3) Monitor your Portfolio's Progress and Report Back To You .

Each quarter, you will receive a report that tracks your portfolio versus your plan.  The report will include your portfolio's progress versus your Investment Plan as well as any recommended rebalancings due to relative over or underperformance from any asset class or classes.  Generally, rebalancings will be "triggered" upon a 3% or greater deviation of a particular asset class's allocation from your Investment Plan.

Additionally, you should request a review of your Investment Plan upon a change in any of the assumptions that went into creating your Plan.  Examples could be a change in marriage status, an additional dependent(s), a raise or promotion, the loss of a job, or an inheritance.