Financial Planning

  • Discover

    What are your dreams and ambitions? Your hopes and concerns? Your values and life purpose? During the initial phase of our process, we work with you to identify the things that constitute your definition of a life well lived. If you’ve ever tried to do this alone, you know how difficult it can be to search deep inside yourself for meaningful answers to these questions. By guiding you through this step, and serving as an objective partner, we can help you achieve complete clarity on what you wish to do with your wealth – and your life.

  • Chart A Course

    Once we’ve established the goals for your wealth and life, we develop a plan for achieving them. We begin by constructing models based on your objectives, current financial situation and feelings. We then review these models with you to select the most appropriate one and to start charting your course. Believing the best clients are knowledgeable clients, we work to make this step entirely transparent and understandable. By the time we're ready to implement your plan, you’ll have a clear vision of where you are, where you intend to go, and how you’ll get there.

  • Navigate

    Some wealth management firms put their clients’ financial plans on autopilot with minimal oversight and monitoring. At Reinhold Financial, we do precisely the opposite. We review your accounts daily. We manage them proactively. We perform ongoing analysis of your plan and its performance. And we meet with you regularly to review your situation for potential course changes if your situation warrants. With our diligent oversight and daily commitment of your plan, you can be confident that you have a partner you can trust to help you navigate life’s unpredictable circumstances.

Asset Management

The Status Quo

“You’re in for the long-term, so don’t worry about this temporary down market.” 

Words to that effect are what you will hear most financial advisors repeating when your investment accounts are down.  I like to call them asset gatherers, because the focus seems to be more on gathering new assets versus pro-actively managing your account.

Has Asset Allocation been Over-hyped for the Benefit of Asset Gatherers?

Typical asset allocation is the process of determining which percentage of a client’s portfolio should be in stocks, bonds, and cash, with the intention of maintaining that allocation for at least five years, barring some major change in the client’s investment objectives. The thing that will not force a change in the allocation is market activity (the ups and downs).  In fact, proponents of static asset allocation see that as its main benefit.   

Asset allocation has been the standard operating procedure among financial planners for more than 30 years now.  Although it is based on the work of economist Harry Markowitz, whose paper “Portfolio Selection” was published in the Journal of Finance in 1952 and formed the basis of modern portfolio theory*, it was not until the 1990s that the concept really took off

Individual Security Selection matters more than Asset Allocation

If there are three investors, each with a 60/40 split between stocks and bonds, and one invests with the best-performing managers, one with the worst-performing managers, and one in index funds, their returns will be vastly different, even though the asset allocation for each portfolio is the same.  How can it be declared that asset allocation is responsible for 93.6% of a portfolio’s returns* when three clients with the same allocations can have such widely varying results?