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Just as medical doctors help you manage your health, the “money doctors” at KCS help you manage your wealth. Instead of preventive medicine, we have financial, estate and tax planning. Rather than prescribe medications, diet or exercise, we prescribe investment portfolios, trusts and retirement plans. In place of regular health checkups, we give you wealth checkups. |
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We combine our planning services with in-house discretionary investment management. This means that we personally manage your investments according to your long-term financial goals, and maintain all your assets within accounts that you own and control. Your funds are distinct from every other client's. |
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Why combine in-house investment management with financial planning, rather than outsourcing to mutual funds or separate account managers? We believe that since we know you and your needs, we can better customize your portfolio than an outside manager who’s never met you and lumps your money with hundreds of others. In addition, we manage our own money right beside yours in many of the same investments, further aligning our interests. |
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Fees for our services are based on a percentage of assets:
- Ongoing financial planning combined with investment management: 1.0% to 1.75% per year.
- Investment management only: 0.9% to 1.5% per year
- Financial planning only may be provided on a case by case basis
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Basing our fees on a percentage of assets provides transparency not typically found in commission-based services. In addition, both you and KCS benefit as your assets increase over time, aligning our incentives. Your growth leads to our growth.
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Our Investment Process |
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At KCS, the investment process begins with your financial goals, time horizon, and risk tolerance. We use this information to match each account with one of our proprietary model portfolios, which we then further customize as needed to best match your needs and goals. |
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Our model portfolios fall into three broad categories:
- Conservative Growth
- Aggressive Growth
- Growth and Income
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The last category is for clients who require income as well as long-term growth of capital. We don’t typically offer “income only” portfolios because without some growth, inflation will eat away at your earnings over time. |
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To develop our model portfolios, we first allocate among the broad asset classes: stocks, bonds, cash, real estate, commodities and alternative investments. We then apportion funds within each asset class to sub-classes. For example, with stocks, we divide your investments among countries and industries, as well as company size and valuation. |
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The above approach is called “top down.” Simultaneously, we employ a “bottom up” approach, looking for the best individual investments among the thousands available. Lastly, we match our “bottom up” selections with the proportions developed through the “top down” approach, creating the most efficient portfolios we can. |
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We prefer to purchase individual securities when possible, partly to avoid the additional fees charged by pooled investment products, such as mutual funds. When necessary, such as in smaller accounts or to include securities that may be difficult to purchase individually, we may use low-cost index funds or exchange-traded funds (ETFs). |
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In some portfolios, depending on client needs and risk tolerance, we may use stock options and/or short selling to reduce risk or provide leverage in an effort to enhance long-term returns. We may also use leveraged ETF or index funds for the same purpose. We monitor all portfolios continuously and make changes to allocations or individual securities according to changing client needs or market conditions. |
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