Individual Process

wealthspan processLinking Accountability to the Financial Planning Process

Building and managing your wealth demands a disciplined professional approach with clear financial objectives. At Longbridge Wealth Advisors, our process involves working closely with you and your other advisors to identify your goals, opportunities and risks. We then review alternatives, recommend solutions, and manage implementation with meticulous attention.

Needs and Goals Change Throughout Your Financial Life Cycle

The asset allocation strategies required to help you meet your goals while you are accumulating wealth may likely be quite different from those prior to and during retirement. To address this dynamic, Longbridge has taken the planning process a step further.

WealthSpan™ – A Scorecard for Each Stage of Your Financial Life

WealthSpan logoWe overlay a unique financial management tool called WealthSpan™ to allocate assets to three or four different buckets. Each bucket represents a phase of your retirement life cycle and has its own financial plan, asset allocation strategy and investment policy statement. The result is an optimum mix of asset management strategies to meet your unique needs at each stage of your financial life cycle.

For example, an individual retiring at age 65 with a retirement wealthspan of 30 years would have three buckets, each representing a period of approximately 10 years.

individual goals

Objective: Capital preservation and income.
Investment Strategy: 100% bonds and 0% exposure to the stock market.

Objective: Growth with moderate risk.
Investment Strategy: Combination of stocks and bonds. Assets are invested today for your income needs 10 years out.

Objective: Growth. Investment Strategy: Long term horizon, typically 80/20 stocks/bonds ratio. Bucket is invested for your income needs 20+ years out.

The Longbridge Investment Management Process

A Balanced Approach to Investing

History shows that while interest‐generating investments, such as cash and bonds, have the advantage of relative stability of principal value, they provide little opportunity for real long‐term growth due to their susceptibility to the risk of inflation. On the other hand, equity investments clearly have significantly higher expected returns but are vulnerable to the risk of severe swings in the market.

To balance the need for safety and performance, our investment process bridges the gap between traditional passive asset allocation strategies and more active investment strategies by providing a combination of both investment process solutions, customized to your precise needs and objectives. How this combination is structured depends on a number of variables, including your plan design, investment policy, benefit structure and financial impact. In this way, we are able to manage your money with an equal emphasis on risk management and investment performance.

Traditional Asset Allocation

At Longbridge Wealth Advisors, we believe that traditional asset allocation has a place in every client's total asset allocation strategy. Studies show that asset allocation is the single most important factor influencing investment returns. Asset allocation attempts to maximize return while maintaining an acceptable level of risk. Different asset classes produce their strongest returns under different market conditions. Therefore, diversifying assets across multiple classes helps reduce risk by distributing dollars among different asset classes and styles that do not move in tandem.

The ActiveView™ Approach

ActiveView logoLongbridge's tactical investment process, ActiveView™, uses a research‐intensive evaluation of markets to enable our team to provide portfolios designed to place portfolio assets in those market sectors showing positive pricing characteristics or price strength. In moving to strength, our objective is to outperform traditional buy and hold asset allocation strategies with similar risk characteristics. By combining a research‐based process with active management techniques, we are better able to help you mitigate risk while participating in growth opportunities that exist in the ever‐changing environment of today's financial markets.

How ActiveView™ Works

ActiveView™ is regimented and disciplined in a manner that adds an unemotional approach to the purchase and sale of each investment. Our research process screens potential investments and looks for advantageous entry points, while at the same time calculating exit strategies for each investment.

Each portfolio consists of 11 independent models. Each model uses independent industry research to rank the assets in the model, choosing only those investments showing positive pricing characteristics.

The Importance of Active Management in Volatile Markets

As the market has changed over time, the fundamentals of an active management investment process continue to be an invaluable asset management tool for both institutional and individual investors. These fundamentals allow investors to enjoy profit in up markets and, more importantly, to be defensive during down markets. The speed at which information flows today makes it more important than ever to make informed investment choices. These investment choices should be based on a proven strategy that is active and quantifiable while at the same time filtering out emotional responses and the “noise” of the ever growing amount of daily information.

Accordingly, ActiveView™ is designed to harness the power of statistical probabilities and mathematical precision to make trades based on current market dynamics, taking emotional trading decisions completely out of the equation.