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Why do our partners choose Crystal Wealth?
Each partners' needs and demands are different, but generally our partners have chosen us for a combination of several of the following factors.
- Move to the next level of investment management
Crystal Wealth is an Investment Counsel/Portfolio Manager. It is important to distinguish between a financial advisor (planner, broker) and an Investment Counselor. While a financial advisor can assist you by recommending investments and helping you put in a place a solid financial plan that considers all aspects of your financial picture, an Investment Counselor focuses solely on managing your investments, usually on a discretionary basis. To be licensed as an Investment Counselor requires more professional investment management education and experience because an Investment Counselor can fully manage your account while a financial advisor can only recommend investments. On the fee side, a financial advisor's compensation is usually transaction-based or linked to the types of investments that he recommends, while an Investment Counselor derives his income by charging a fee for managing your wealth. Because a financial advisor's income differs based on the type of products he recommends, there is more potential danger of conflicts of interest entering into the recommendation.
- Disciplined and Transparent Investment Management Process
We believe the best portfolio is one that focuses on strategically allocating between passive participation in the major world financial markets, active management in certain specialty areas and the addition of non-traditional, non-correlated asset classes to improve return while minimizing risk. All of this must be done while keeping in mind the taxable situation of our partner. We focus on setting and managing the strategic and tactical asset allocation mix to best achieve your return requirement while minimizing risk. We then use a combination of exchange-traded funds, pooled funds managed by the best investment managers in specific areas, and alternative investment vehicles which further diversify and protect your wealth.
- Individual Investment Policy Statement
We develop with each partner a specific Investment Policy Statement (IPS) that outlines what the return requirement or goal is, what income requirements (if any) exist as well as how much risk is acceptable to achieve these goals. The IPS also details any restrictions on investments that may be driven by our partner's social or economic concerns. Also, key in the IPS is an agreement as to the service level that the partner expects including frequency of reporting and review meetings. We recognize that some partners may want to meet monthly while others would prefer annually and we don't feel it's our place to dictate that we will only meet quarterly. The IPS is a living document that is revisited at each review meeting to ensure it is still valid and current.
- Individual Portfolio Balance
The uncertainty of the future is a certainty. Because of this immutable law, it is important to always have balance in your portfolio. However, that balance should not be dictated by cookie-cutter approaches to asset allocation based on your age or experience. Each individual's unique life situation has a direct impact on the construction of his or her ideal portfolio.
We don't believe in a one-size-fits-all approach. Our partners have accumulated significant amounts of wealth and they require and deserve a highly personalized and individual portfolio that takes into account their specific goals and needs. We construct and manage each partner's portfolio by following certain core principles:
- Strategic (long-term) diversification targets for each asset class (cash, bonds, stocks, alternative strategies, disaster protection) as driven by the client's unique situation.
- Tactical alterations within these target weightings as driven by current economic conditions.
- Broad-based equity index participation for major world markets rather than individual stock selection.
- Quality and safety for fixed income selection rather than chasing the highest yield.
- Broad diversification for alternative strategies exposure supplemented by intensive due diligence.
- Fixed cost minimization (avoiding high fixed management fees).
- Team-based approach to investment management decisions.
Your portfolio should be as unique as you are, taking into consideration any social or economic values that are important to you as well as looking at your particular income or growth needs and your future income-earning ability. At Crystal Wealth, we honor the trust our partners have placed in us by providing them with the highest level of professionalism and individual attention that is possible.
- Highly Personal Relationship and Service
Most firms in the investment management business make promises or claims about giving highly personalized service to each of their clients. Unfortunately, few succeed in delivering on these promises because they become too focused on gathering assets and getting new clients. We have made it a disciplined, integral part of our private partner division to deliver on our promise of the best service. We do this by limiting each of our Investment Counselors to 100 partners and by providing a service guarantee.
- Personal Service Guarantee
Each of our partners receives a personal service guarantee when they become our client. Basically, we promise to deliver all of the services outlined in the individual IPS on the timelines promised or else we will donate $1,000 to the charity of choice of our partner in his or her name.
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