How We Manage Money
A Process Orientation
Strategize
At the onset of the relationship, strategic conversations are imperative as we design an allocation that defines and supports a return objective that aligns with both income need and a level of risk with which you are comfortable.
Analyze
Often times, clients hold securities obtained prior to their involvement with Kavar Capital Partners. It is incumbent upon us to consider the merits of these positions in addition to those that we ultimately recommend. There is no pride in authorship in our client accounts, only pride in the accomplishment of our clients’ goals. Our analysis begins with an assessment of the macro economy. It continues with the evaluation of the individual securities in our clients accounts and, fundamentally, it never ends. Ours is a fluid process of analysis, acknowledging that expected returns fluctuate based on the underlying investment environment.
Compartmentalize
Liability Driven Investing (LDI) calls for matching future expenses when designing a portfolio. Compartmentalize each dollar of discretionary cash flow in conjunction with strategies to address multiple goals across multiple time frames.
Rationalize
Discussions must transpire as it relates to cash flow, spending and rational expectations and rational consequences. Properly maintaining the portfolio allocation requires open collaboration amongst all parties, in order to ensure that the portfolio evolves consistently with your life. As we continually assess your situation and the suitability of your allocation in the existing economic climate, necessary modifications are made to the strategy.
Optimize
Optimization has 2 core components: tax efficiency & portfolio longevity. These components are intended to be complementary as they pertain to both the income/principal disbursements from client portfolios and the generational transfer of those portfolios.