6 Step Investment Process with A&I Financial Services LLC

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Expert Network Team Podcast

Mike Miller CPA tells a story about a friend who made it through the economic shutdown from the pandemic because of his strong balance sheet. Mike shares questions to ask yourself as you think about your finances. Learn a practical idea about planning for what to do when business income declines. Mike shares the four elements of a strong balance sheet. Learn rules of thumb for a “rainy day fund” and what lenders look for in companies. Learn about “negative net worth” and how to keep a forward focus when you’re looking at financial statements.

Our 6 Step Investment Process

Our investing process centers around six steps:

Step 1: Discovery Process. Our investment plan process begins with a thorough conversation about your financial values and goals, as well as your key relationships, existing assets, other professional advisors, preferred communication style, and personal interests.

Step 2: Liquidity and Income. We separate your short-term needs for income and liquidity from long-term needs for financial security. Short-term needs require liquidity. Money for these goals should be managed with a short-term investment horizon. 

Step 3: Long-term Objectives. Taking into account the long-term nature of successful investing, we set objectives for your portfolio that are appropriate for your risk profile and for the investment horizon(s) you identify. 

Step 4: Asset Allocation. Asset allocation is the first investment decision. We decide how much of your portfolio to invest in asset classes, such as equities, bonds, alternatives, and short-term investments. 

Step 5: Investment Strategies. With an asset allocation in place, we select the investment vehicles you will use to implement your portfolio strategy. Several key investing principles guide these selections: the importance of asset class decisions, the time value of money, and the quality of investment management.

Step 6: Build Your Portfolio. Building on the first five steps, we construct a portfolio suited to your needs, goals, time horizon, and risk profile. The building blocks for your portfolio are institutional investment managers and investment products.

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About the author

Karl Frank, Certified Financial Planner ®, MSF, MBA, MA, is the President of A&I Financial Services LLC, a local business that specializes in wealth management, insurance planning, and retirement planning. Karl cares for business owners and the businesses that care for them. Learn More about Karl.