Signature Portfolio Management

Investment Process

At Spreckels Wealth Management, our investment process is built on our proprietary six step process:
  1. Identify Risk Tolerance 
  2. Determine Optimal Asset Mix
  3. Review of Current Portfolio
  4. Align Current Portfolio with Risk Tolerance (determine recommended portfolio)
  5. Implement Recommended Portfolio
  6. On-going Monitoring of Portfolio

01

Identify risk tolerance

Our investment approach starts with gaining a comprehensive understanding of your tolerance for risk and the time-horizon for your investment goals. This is done through our comprehensive Risk Discovery Process. After we have determined your risk tolerance, it is time to create the appropriate mix of stocks and bonds, also known as your asset allocation. Your risk tolerance will drive that mix to make sure we build a portfolio that is tailored to that risk.

02

Determine Optimal Asset Mix

Your asset mix will be determined by the outcome from the Risk Discovery Process. This is then memorialized in your investment policy statement (IPS). Every investor should at a minimum have a written IPS for their investment portfolio as it acts as the blueprint for how your portfolio is to be managed and the responsibilities of each party in the investment process.

03

Review of Current Portfolio

After we have established your risk tolerance and developed the appropriate asset mix, we go through your current portfolio to review its risk level and compare that to your established risk tolerance.

04

Align Current Portfolio with Risk Tolerance (determine recommended portfolio)

From there, we determine what actions are necessary to align your current investment portfolio with your risk tolerance. This involves an analysis of any tax consequences, a list of what we should buy and what we should sell to bring your portfolio into alignment with your risk tolerance and make sure you are compensated for the level of risk you are taking.

05

Implement Recommended Portfolio

The implementation phase of this process entails the buying and selling in your portfolio to achieve the two main goals:

  • Alignment of your portfolio risk with your risk tolerance
  • Maximize the portfolio return for the level of risk you are taking

06

On-going Monitoring of Portfolio

After we have implemented all the changes to your portfolio, we monitor your portfolio on an on-going basis and make small changes as needed and rebalance the assets in the portfolio when the asset mix gets out of balance.