Balancing
YOUR WEALTH

5-Step Consultative Process

Our Wealth Management Consultative Process employs a comprehensive series of steps to uncover any gaps that our clients may be exposed to as it relates to their life and financial goals.

Investment Planning

When it comes to investment planning, our process is logical and deliberate. It was chosen to fit with our clients’ objectives: to create and maintain peace of mind regarding their investments.

We understand that rates of returns used in financial planning are only forecasts. Nobody can tell you with certainty if the returns will be achieved or not over the lifetime of the plan.

Furthermore, we do not believe anyone can consistently time the markets and/or predict the direction of interest rates and the economy, which are unknowns.

Our approach is to control what we can control. Through the use of sophisticated technology and our disciplined 50-year research analysis using our RISK-BALANCED ALLOCATION approach, we work with our clients to arrive at the most appropriate solution for their financial needs and balanced by their risk tolerances. There are two main steps to our process:

• First, we work to understand if our clients can achieve their financial goals using forecasted returns of highly conservative portfolios constructed around a well-documented, disciplined investment strategy.
• Second, we invest using this well-documented, disciplined approach, which has shown over time to provide more than double the conservative returns used in the first step.

This highly DISCIPLINED approach assists in providing you with a broader perspective and better understanding of the ramifications of your investment decision-making, thus offering you what we believe to be the highest probability of achieving your financial goals over your lifetime.

Investment Process

At Palumbo Wealth Management, we are all about DISCIPLINE, and nowhere could it be more important than in the investment process. In studying and experiencing a variety of investment approaches, we have chosen to build our portfolios FIRST with the concept of risk in mind.

Our RISK-BALANCED ALLOCATION approach enables us to blend uncorrelated asset classes together that assists in producing a balanced portfolio.

This approach to portfolio construction offers the opportunity to control volatility (risk) in a portfolio by equally weighting the risk characteristics of each investment category. For example, a portfolio of 50% stocks and 50% bonds is not equally risk-weighted because stocks are riskier than bonds. In this case, you would have to increase your bond exposure and decrease stocks to a certain level so the risks are distributed equally.

In addition to risk parity, we conducted extensive research covering a 50-year period to understand various economic environments that develop within a country and how certain investment categories performed.

Our research identified that there are predominately four main economic environments that occur within an economy:

• Growth accelerating
• Growth decelerating
• Inflation accelerating
• Inflation decelerating

When one or two of these conditions are present within an economy, certain investment categories will perform better than others. For example, when growth is accelerating, stocks typically perform well. When inflation is accelerating, gold and commodities can perform well, and when inflation and growth are decelerating, long and intermediate-term treasuries tend to outperform.

Incorporating our RISK-BALANCED ALLOCATION approach and findings from our 50-year research study is the foundation of how we PROTECT our clients’ money FIRST, and SECOND, how we provide them with a rate of return that has proven to outpace conservative forecasts assumed in our financial planning process.

Advanced Planning Process

One of the key features of working with Palumbo Wealth Management is that you can benefit from the services of a seasoned wealth manager who is firmly dedicated to helping our clients reach their long-term, multi-generational goals.

Our unique approach is to conduct Advanced Planning Sessions with new clients and those who have undergone major changes to their life situations. We use these sessions to identify gaps as it relates to taxes, transfer of wealth, asset protection and charitable giving. We then can discuss tax strategies, estate plans and goals for the transfer of wealth to the next generation. Our approach is holistic as it relates to your total wealth picture and we develop comprehensive strategies to address those gaps. We work to close those gaps as quickly as possible so that we can present a picture of where you are currently, where you are going, and where you need to be.

Drawing on behavioral finance, we have developed a very sophisticated portfolio management system that uses strategic allocated investment models which are consistent with our clients’ investment horizon and tolerance for volatility (risk).

In addition to our distinctive portfolio management approach, Palumbo Wealth Management gives you access to Advanced Planning Strategic Partners consisting of experienced CPAs, accountants, attorneys, estate and trust planners, insurance professionals, and property and casualty experts. We spent months interviewing professionals to identify a group of seasoned individuals who had at least 15 or more years of experience and owned their own firm or served as a partner in an established firm. We wanted this team to be around the same age as our team so that they could help our clients today and be around for many years to come. This combination of expertise, skills and experience, coupled with highly personalized service, is unique among Wall Street firms.

The Advanced Planning Strategic Partners meet every two months to review new client cases with the goal of the team helping our firm to better understand any gaps that our clients may have as it relates to their areas of expertise. In this way, they help Palumbo Wealth Management deliver a holistic approach to wealth management for our clients.