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Our financial planning process.

A five step process for setting goals, understanding your finances, making recommendations, and keeping the plan up to date.

  1. 1

    Identify and prioritize your goals

    We define the outcomes you are trying to achieve, the timing of each goal, and which goals should take priority when tradeoffs are required.

  2. 2

    Understand your current financial situation

    We gather the information needed to understand your assets, liabilities, income, spending, tax situation, insurance coverage, estate plan, and other relevant circumstances.

  3. 3

    Evaluate whether your current plan supports those goals

    We use the information gathered to determine whether your current approach is likely to achieve those goals and identify where changes may be needed.

  4. 4

    Develop recommendations

    We determine the changes we believe would improve the client’s chances of achieving their stated goals and explain the rationale behind each recommendation.

  5. 5

    Implement, monitor, and refine the plan

    We put the agreed changes in place and continue refining the plan as markets move and the client’s circumstances or goals change.

Surface Level Advice vs. Comprehensive Advice

These four questions are often enough to place a client into a model portfolio and avoid a wildly inappropriate recommendation. They are not enough to deliver comprehensive advice or optimize for the best client outcome.

Standard questions most advisors askAdditional questions comprehensive advice requires
Standard questions most advisors ask
  • 1How old are you?
  • 2When do you want to retire?
  • 3How much risk are you comfortable taking?
  • 4How much income does the portfolio need to produce?
  • 5How should Social Security and Medicare decisions be navigated around retirement?
  • 6When you need cash, which accounts or assets should it come from first?
  • 7How should required minimum distributions be managed to avoid unnecessary taxes later in retirement?
  • 8Should debt be paid down or should the money remain invested?
  • 9Are there better ways to structure account ownership and beneficiary designations?
  • 10If one spouse dies first, what changes financially for the surviving spouse?
  • 11What estate planning strategies could reduce taxes and make the eventual transfer of wealth more efficient?
  • 12Are there meaningful risks that your current insurance coverage does not protect against?
  • 13When do Roth conversions make sense, and how much should be converted each year?
  • 14Are there opportunities to realize capital gains or losses strategically in years when you are in a lower tax bracket?
  • 15How should you plan for long term care expenses without unnecessarily tying up too much capital today?
  • 16What is the most tax efficient way to fund education expenses?
  • 17What is the best way to give money or assets to children without unnecessarily triggering taxes?
  • 18How can charitable giving be structured to maximize the tax benefit of gifts you already intend to make?
  • 19How should a concentrated stock position be reduced without creating an unnecessary tax bill?
  • 20How should equity compensation affect the rest of your portfolio and financial plan?
  • 21How can you get the most value from your employee stock purchase plan?
  • 22How should ownership of a private business affect your investment portfolio and financial plan?

J.D. Power’s 2023 U.S. Full-Service Investor Satisfaction Study found 11% of advisors delivering comprehensive advice, against 42% transactional and 47% goals based.

A major financial decision can affect several parts of your financial plan simultaneously.

We seek to understand how those changes affect the rest of your finances before making a recommendation.

Clients shouldn’t have to manage their advisor

Far too often, clients only hear from their advisor after they raise an issue themselves. We believe the advisor should be reviewing the client’s situation continuously, looking for new opportunities and potential problems, and reaching out when there is something that requires the client’s attention or a decision.

Typical client experience
Valorem experience
Notice something needs attention
Client
Valorem
Determine the right question to pose
Client
Valorem
Initiate the client/advisor conversation to discuss the issue
Client
Valorem
Present the available options and a recommendation
Advisor
Valorem
Follow through once a decision is made until the matter is closed
Client
Valorem
Make the final decision
Client
Client

Book a call with Valorem.

We will review your current portfolio, explain what we would keep or change, and show you how we would manage it going forward.