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Assessing Your Goals, Circumstances and Risk
Understanding the Strategy
Building the Portfolio
The Client Experience
Fixed Income
100
The first meeting in the investment planning process where the advisor learns about the client.
What is the Discovery Meeting?
100
Buckingham's approach to investing is based on this.
What is evidenced-based or academic research?
100
DFA, Bridgeway, and AQR
What are the three main fund companies Buckingham uses in their portfolios?
100
Discovery meeting, Investment Plan/IPS Development meeting, Implementation meeting, and Regular Progress meeting
What are the four main parts of the client experience?
100
These are the two main investment vehicles used by Buckingham's Fixed Income department.
What are fixed income funds and individual bonds?
200
Considerations like time horizon, working or retired, and job stability.
What are things that would affect your ability to take risk?
200
This is the primary role of fixed income in a portfolio.
What is to reduce portfolio volatility?
200
This famous chart shows why it's virtually impossible to predict which asset class will outperform the others in any given year.
What is the quilt chart?
200
This document outlines the client's values, goals, relationships, assets, etc.
What is the Family Profile?
200
$500,000 (or a million if purchasing municipal bonds).
What is the minimum asset level to consider individual bonds?
300
A measure of how closely a portfolio follows the index to which it's being benchmarked.
What is tracking error?
300
Tilting to these three factors can increase expected return.
What are size, value, and momentum?
300
Research has shown this to be generally counterproductive since markets tend to go up over time.
What is dollar cost averaging (DCA)?
300
This is document is used to show prospects how they're currently invested.
What is the Portfolio Analysis?
300
This type of bond is the most common one purchased for our client (followed closely by tax-exempt municipals).
What are CDs?
400
Purpose of the portfolio, size of the portfolio, funding sources and risk willingness.
What are factors that should be considered when creating any investment plan?
400
One argument for this is that approximately half the world's stock market value is located in non-U.S. companies.
What is global diversification?
400
Where we look to place less tax-efficient asset classes like alternatives and fixed income.
What are tax-advantaged accounts?
400
The minimum percentage of final probability of success Buckingham recommends on the Wealth Analysis
What is 85%?
400
These two risk premiums are seen on the fixed income side.
What term and credit?
500
An investor's need to take risk is directly tied to this.
What is rate-of-return objective?
500
.50 percent
What is the weighted average expense ratio we generally like to keep portfolios under?
500
Style Premia, REIT, and commodities are a few examples of these.
What are alternative strategies?
500
The number of days our custodians allow for free trades on new accounts.
What is 60 days?
500
These types of bonds contain equity-like risk and higher default rates, which is why Buckingham doesn't use them in our client's portfolios.
What are corporate bonds?