Implementation

How can we help you build a custom portfolio based on passive asset class investing? Every client's situation is different.

Citium Wealth Management is happy to discuss the details related to your unique needs when you contact us. Following is a summary of the key building blocks we use:

Step One: Establish a relationship with Citium Wealth Management as your trusted, fee-only registered investment advisor

Step Two: Learn how passive asset class investing helps you achieve your financial objectives, define your personal investment policy, based upon your risk profile

Step Three: Construct your portfolio

Step Four: Rebalance/maintain your portfolio; periodically assess your objectives and determine when carefully planned restructuring may make sense

Step Five: Enjoy your life.

Step One: Establish a relationship with Citium Wealth Management as your trusted, fee-only registered investment advisor.

1. Contact Citium Wealth Management!

2. Have an initial conversation (in-person or by phone) to answer any initial questions and briefly discuss Citium Wealth Management.

3. Let's meet and thoroughly review your situation (60-90 minutes)

a. Complete initial interview discussing your long-term goals, investment history, risk profile, etc.

b. Review current statements, including initiating a portfolio analysis if needed.

c. Include others who will be part of the relationship (spouse, trustee, etc.)

Our Fee-only structure means NO COST to you for initial meetings.

Step Two: Learn how passive asset class investing helps you achieve your financial objectives; define your personal investment policy based upon your risk profile

The better you understand the key factors that contribute to or detract from investment returns, the greater your odds are for enjoying a successful investment experience. Citium Wealth Management provides ongoing education and advice, so you can more easily make informed decisions about a policy that makes sense for you.

For example, volumes of research have indicated that you can expect to be compensated with a risk premium when you incorporate riskier asset classes within your portfolio. But how much risk is too much risk?

Your ability to take risk - When do you plan to spend your assets?

Your willingness to take risk - How well will you be able to "stay the course" when the market is doing poorly or when your portfolio doesn't resemble standard market indices such as the S&P 500?

Your need to take risk - How are you doing so far? If you're already near or at your objectives, don't risk losing them.

What is most important to you - For example, if you are not by nature a risk-taker, but your need to accept risk is high, Citium Wealth Management can help you assess how to address this conflict.

Step Three: Construct your portfolio

The advantage of accepting portfolio risk as part of your personal investment policy is its expected premiums. A disadvantage of risk is the volatility it can create in your portfolio (which can tempt you to abandon your carefully designed investment policy). Diversification is the key to managing volatility.

Based on your risk profile, Citium helps you construct a globally diversified portfolio that contains an appropriate measure of some or all of the following asset classes:

Stocks of domestic and international companies

Stocks of small, large, distressed and glamour companies (small-cap, large-cap, value and growth)

Fixed income

Additional asset classes such as emerging market stocks, real estate and commodities

For investing in equity (stock) asset classes, you can typically turn to mutual funds that best capture these primary characteristics:

Passively managed - tracking an asset class or index rather than attempting to pick winning securities or time future market movements

Low-cost

Tax efficient - for taxable accounts

For fixed income investing, you can incorporate funds with similar characteristics. Or Citium may suggest the construction of a custom bond portfolio based strictly on high-quality individual bonds structured to meet your income flow and/or risk management needs.

Step Four: Rebalance/maintain your portfolio; periodically assess your objectives and determine when carefully planned restructuring may make sense

Over time, a properly constructed, diversified portfolio is likely to move out of balance as each asset class you own performs better or worse than the rest of your holdings. When appropriate, Citium helps you restore your portfolio to its original asset allocations and risk profile.

Rebalancing has the added advantage of implementing a "buy low and sell high" discipline when you sell your recent outperforming (overweight) asset classes and purchase recent underperforming (underweight) asset classes. But transaction costs and the potential tax impact must be considered as part of the process, so consider having Citium help you incorporate the following strategies:

Rebalancing with existing holdings only when significant adjustments are needed .

Taking advantage of new assets to rebalance whenever possible.

Implementing tax-management techniques such as rebalancing within tax-deferred accounts, tax-loss harvesting, and avoiding short-term capital gains.

Beyond periodic rebalancing there also may be times when major life changes cause you to reassess your guiding objectives. Events such as births, deaths, marriage, divorce, career changes or retirement may require you to revisit your original financial objectives and risk profile (your willingness, ability and need to accept risk), which may in turn result in a need to adjust your plans and/or reallocate your portfolio.

Citium Wealth Management can assist you throughout your relationship with us in determining when such changes may make sense (and when they may not), and how to implement them logically, cost-effectively and with tax considerations in mind.

Step Five: Enjoy your portfolio!

Enjoying life. There's an ingredient that is too often overlooked in the serious world of financial services. Yet we cannot overemphasize that the primary objective of investing is not just to accumulate wealth, but rather to achieve your life's goals. That is why your and your family's lifelong dreams and visions remain an integral part of our investment advice to you every step of the way.

Whether your goals include achieving a comfortable retirement, seeking higher education for your children, traveling around the world, leaving a substantial legacy, or pursuing favorite hobbies, our goals are aligned with yours.

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