Why Should I Choose Warren Financial?
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Executive Summary
At Warren Financial Service, our goal is to grow assets! We are a unique money management firm. We utilize our wealth of experience to provide diligent, consistent, on-going management of your portfolio. We will build you a portfolio that achieves your personalized goals. Then, we will stay on top of it, to ensure that it continues to perform for you as your needs change. We can consolidate your assets by rolling them over. Or, if your assets are in 401k or 403b plans, we can team with you, to manage them right where they are today – without moving them. We will meet with you regularly to ensure that your assets are working hard to build you a better retirement, get your kids through school, or to provide for the next generation. We handle every type of investment and work to match your assets with your needs.
Creating your portfolio is the confluence of art and technology. These days, more than ever before, people are turning to WFS for professional help with investing. It used to be easy back in the 1990's. Now, it's much harder to make money in the markets. Do-it-yourself investors and Buy-n-hold investors have unhappily found their retirement savings tied up in companies such as Enron, K-Mart, Xerox, Lucent, etc. Warren Financial utilizes a rigorous approach to asset selection and we continually monitor and review those selections for any potential necessary changes.
After the 2001 bear market, Wall Street analysts went to jail for telling individual investors to "buy" while knowing full well, that the companies they were recommending were not worth the price. Then came the mutual fund scandal of 2003 and investors learned that not only did the big wigs of corporate America have their hand in the cookie jar, but mutual fund companies have been giving unfair advantages to any hedge funds willing to pay them off. After investors were burned in the Dot-com bust, they ran to real estate investing just before that bubble burst. Late in the decade investors have been running right into the arms of the next bubble, bonds, or gold (take your pick). Who is giving out such bad advice? What has your advisor been telling you? Do you feel "safe" in bonds (after a 27 year bond bull market)?
Who can you trust?
Certainly not the big Wall Street firms. Merrill? Morgan? Schwab? No thanks. If you are like many investors these days, you want to turn to a professional company that is founded and run on Christian values.
If your advisor is Merrill or Goldman or any of the other big firms, consider the fact that these are the very same firms that had to be bailed out by the US Gov't for losing $billions$ of their own (and investors) dollars. If they can't manage their own money, do you want them managing yours?
WFS is quickly becoming the firm of choice for investors fed up with Wall Street. WFS is completely unbiased and always puts our clients best interests first. We have none of the conflicts of interests that plague Wall Street (click on this sentence to read a press release directly from the SEC regarding conflicts of interest). How do you know WFS is unbiased? We are not paid on commission. We are only paid directly by our customers. So we are a team with our clients right from the start and throughout the relationship. Our one and only goal is to make our client's investments grow! It shouldn't be any more complicated than that. And with WFS, it is never complicated.
At Warren Financial, our advice and management is customized for each investor. The performance we get for each investor is custom too. It depends on your risk profile and tolerance.
All of which are good reasons to become a client of Warren Financial. Everything is custom. WFS is a boutique financial services firm focused on service. WFS caters to our clients needs .
From income generating investments, to aggressive investments, derivatives, and shorts, we can do it all. But we never push clients into areas of risk they are not comfortable with. Perhaps most important, assets get moved as the market demands, as frequently as the market demands.
We never "sell" our customers on any investment, then pocket the commission. We provide on-going management. This is a huge advantage for WFS clients. But, most investment advisors do sell commission based products. We feel strongly that selling commission based products is biased and not in the client's best interest.
WFS provides investment management. We will move our clients into and out of, stocks, bonds, mutual funds and real-estate as the market conditions warrant. We can use the same funds that those commission based advisors use (and many more), except we don't charge commissions. It's a solid deal.
And, since you pay an annual fee which only goes up as your portfolio grows, we are immediately and forever on your side!
Our incentive is to grow your assets!
Detailed Analysis
What Makes Warren Financial Different From Brokers and Other Managers?
The difference between simple asset allocation, and what we do, is contained in the word "on-going". Asset allocation should be constantly changing depending on several factors, your age, your life circumstances (are you retiring? do you have children entering college soon?), your amount of money (ie. did you recently receive an inheritance, etc.), market conditions, etc.
During a bear market, if you keep your asset allocation the same as during a bull market, then your portfolio might suffer great losses. Typically large brokerage firms have only 2 legs of a 3 legged stool, they have asset allocation and asset evaluation. The leg that makes the stool stand, through bear and bull, is asset preservation. WFS provides all three legs of the stool to ensure stable financial growth.
During a bear market you want to over-weight bonds and money market. During a bull market, you want to overweight stocks.
One of the key differences between WFS and Merrill Lynch for example (using Merrill as a typical example for Merrill, Goldman, and all the others) is that we manage the money on an on-going basis, today, tomorrow, next year, etc.
Second, WFS will never sell a commission based product. Merrill sells all kinds of commission based products, or makes commissions on every buy and sell as a broker. So, they have a built in conflict of interest – as a broker the more they buy and sell, the more commission they get.
Some people therefore, have turned to wrap-fee programs offered by Merrill and other brokers. The only reason wall street offers these is because smart people see the conflict of interest built into regular brokerages and stay far away. So, in response, most brokers now offer a program where you pay an annual fee instead of commissions. For your annual fee, you get to talk to the full service broker who will give you advice any time you want it. But guess what? If you're not pro-active, you lose again. Your broker might (maybe) call you once in a while to tell you to make a trade, but it's not likely. That's why congress has wall street analysts on-trial regarding Enron asking them why they continue to recommend stocks that are failing. If an analyst has a buy rating on a stock (they have 10 times more buy ratings than sell ratings, even during the bear market), then why should a broker call you up and tell you to sell? Another conflict of interest.
Third, Conflicts. Big investment houses that do "everything" have too many conflicts of interest. They are never, never, never on the side of the little guy. Why? Because that's not where they make their big money. The big money on wall street is made from companies in the Mergers and Acquisitions department and Investment banking relationships, etc. Not in helping the little guy.
For example, say they sold you an aggressive growth mutual fund in 1999. You were quite happy for a while. But that sales person has no incentive to reposition you into new, appropriate funds because he would run the risk of churning your account. Churning is illegal. So, he sells you the fund in '99 and forgets all about you, moving on to the next potential client. You are stuck. You didn't buy investment management, you bought into a fund and got one-time advice which is totally inappropriate today.
Everyone needs a manager who will watch their portfolio regularly. That will change asset allocations with market conditions. That will recommend only those things that are in the clients best interest.
Warren Financial Manages Money on Three Levels
- First, WFS does asset allocation.
- Second, WFS does asset evaluation.
- Third, WFS does asset preservation.
Asset Allocation
Typically, we choose between the following:
- Money market (very conservative)
- Bonds and bond mutual funds (still conservative)
- Sector Mutual Funds (conservative to moderate growth)
- Stocks and stock mutual funds (conservative to aggressive)
If you are a conservative person, you will find yourself invested more in the conservative asset types. That could mean all stock mutual funds, if they are conservative stock mutual funds. Or, it could mean lots of bond mutual funds with a sprinkling of growth oriented stock mutual funds. Each client has different needs.
Asset Evaluation
WFS does asset evaluation. After choosing appropriate percentages of your money and placing it within the asset classes listed above, we then pick individual stocks, bonds, mutual funds that build a portfolio that makes sense for the client. Then, tomorrow, we do it all over again. Reviewing the portfolio constantly. Making changes constantly. And, always using the internet and as many no-load features as possible to keep the broker's take to a minimum.
Asset Preservation
WFS does asset preservation. It seems that most people forgot how important this aspect is during the bear market.
Even if your risk tolerance is very high, if we are anticipating a downturn in the market, we will scale back the risk level in your portfolio. Then, when the downturn occurs, your portfolio outperforms the market by staying stable when all other portfolios are falling. On the optimistic side, if your risk tolerance is low, yet we are anticipating a rising market, we would attempt to make you comfortable with a bit more risk so that you can reap great rewards. In this way WFS attempts to monitor your portfolio such that it outperforms the rest of the marketplace when the market is falling, AND when the market is rising.
Performance! is the result. Potential new clients often ask us what our performance has been. We can give a good indication, however, recall that your portfolio is custom built for your needs by unbiased WFS advisors. So, each portfolio will perform slightly differently. In a normal market, neither raging bull, nor growling bear, stocks on average will provide an 11% return. If your risk level is average, our goal will be to exceed 11%, aiming towards a 15+% return.
At WFS we monitor thousands of stocks, bonds, mutual funds, and real-estate investments. We don't monitor them monthly, like a trade publication. We don't even monitor them daily. We monitor them every minute of every trading day.
We are looking for trends. We know what is going up and what is falling. We examine each promising investment to see if it has good prospects for the future. We only pick those investments that are in the client's best interests.
Turbo-charged Performance. If you are an investor who owns individual stocks, whether you wish to keep them or not, you should get WFS to turbo-charge your investments with options. Covered option writing can add 4-6% to your portfolio with Very Little Risk. If you have more than $200K in any one or more stocks, you should have WFS using this strategy to bring your performance up a notch. If you have more than $1m in any one stock you can have WFS implement a Structured Equity Solution for you. This will allow you to raise cash without selling and without incurring an immediate tax burden.
Minimums. We don't place minimum investment sizes on our clients. We are in business to help people. Regardless of their net worth. With new state of the art software, we are able to add new clients to our family.
Summary
That's what WFS calls investment management. We offer our clients a customized portfolio, tailored to your own risk tolerance, managed on an on-going basis with proper asset allocation and investment choices that are ALWAYS in your best interests. Never a commission. Never biased advice. Just solid, long term investment management that works for you. Find out how much we can improve your portfolio performance. Call us, e-mail us, or click below to get started today....