Our primary business is providing investment management advisory services. As a registered investment advisor, Sterling Investment Advisors, LLC is required to act as a fiduciary; putting the client’s interest ahead of its own. As an example, should a client consider transferring funds from a qualified plan to a rollover IRA, Jones will make diligent and prudent efforts to obtain the current offerings and expenses of the qualified plan, compare them to those of proposed rollover IRA, and share the analysis with the client. This process is designed to ensure the client can effectively evaluate whether the transfer is in their best interest.
Sterling Investment Advisors, LLC is committed to creating individual, well-diversified portfolios with varying levels of expected risk and return depending on the client’s needs.
The investment management advisory service begins when Jones meets with the client to discuss the client’s return objective, risk tolerance (both ability and willingness), liquidity needs, time horizon, legal constraints, taxes and any unique circumstances.
In most cases a multi-year cash flow projection is created which reflects the client’s particular circumstances. In these cases, Jones conducts a monte carlo simulation using portfolios with different risk and return characteristics. A monte carlo simulation is a process of evaluating how well a portfolio achieves the client’s goals and objectives under many different economic scenarios. By evaluating the relative performance of the different portfolios, Jones is better able to formulate his recommendation.
Once chosen and implemented, the portfolio is reviewed for possible rebalancing every quarter. In addition, we believe it is important to update a client’s investment plans at least annually. The annual review is based upon current account values, updated client goals and objectives, and return and risk expectations that reflect the current economic conditions. It is at this time that Jones determines whether he will recommend a portfolio change. On infrequent occasions, Jones may, for a variety of reasons, recommend a change to the portfolio prior to the annual review.
Of course there are many assumptions made in the investment management planning process. Jones estimates the timing and size of future cash flows, expected future inflation rates, the expected return and risk of portfolios, and future tax rates among other things. There is a level of uncertainty regarding each estimate. While Jones takes care to make estimates he believes are reasonable and consistent with finance theory, they are estimates. As estimates they can be wrong. The investment management process is designed to help the client adapt to changing economic realities and make informed decisions. While the process increases the likelihood a client will reach their goals and objectives, it cannot guarentee their attainment.
2095 S. Boston Place Telephone: 417-777-7677
Bolivar, MO 65613 Email: firstname.lastname@example.org