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Investment Objective
To create wealth in excess of inflation by investing in stocks, bonds
and 100% no load/low load, no transaction fee mutual funds from major
mutual fund companies.
Investment Affiliation
Financial Freedom, LLC is a member of the Fidelity Investment Advisor
Group. In addition to providing our clients with cutting edge technology,
comprehensive management information and superb customer service,
Fidelity provides a complete menu of financial products including
stocks, index funds, ETF (exchange traded funds), individual bonds and
over 4,000 no load, no transaction fee stock and bond mutual funds.
Separately Managed/Individual Accounts
Each client's account is an Individually Managed Account. Having individually
managed accounts allows us to tailor the asset allocation and portfolio
diversification to your specific needs. Other advantages of an individually
managed account include the potential for tax efficiency, and the ability
to include or exclude a specific stock or mutual fund.
Research
Methodology, Risk, Volatility & Performance Analysis
We utilize the Morningstar Rating System to insure that we maximize
return while minimizing risk. This system allows us to analyze and track
the risk adjusted performance of each fund that we use. Morningstar
provides our computer with a monthly performance update on almost 15,000
mutual funds. Ask us for a report outlining the specific resources that
we utilize to research and select appropriate investments.
Asset Allocation
We allocate assets between equities, fixed income and cash based on
each client's age and financial objectives, with special concern for
each client's "sleep comfort level" (aversion to risk). We
continually monitor and adjust these variables based on changes in
the economy, and opportunities in the stock market. We diversify the
overall portfolio by making sure that the fixed income and equity segments
of the portfolio are well diversified. In diversifying the fixed income
portfolio we would consider using Treasury Inflation Protected
Securities (TIPS), Ginny Mae's (GNMA'S), Corporate Bonds, Fixed Annuities
and Bond Index Funds. We diversify the equity portion of the portfolio
by using six asset classes (Large cap, Small and Mid Cap, International,
Energy/Natural Resources and Real Estate).
Active vs. Passive Asset Allocation
Economic developments and market psychology continue to change. Let's
discuss the benefits of active asset allocation.
How Do We Evaluate
Our Investment Management Performance
Our philosophy is that paying investment management fees should
be looked upon as an investment in your portfolio, and that
those fees should not be an expense to the portfolio. In other
words, we believe that an investment manager should add value to the
portfolio
in excess of fees. We utilize relevant industry benchmarks to evaluate
portfolio investment results
on an annual basis.
Examples of some Mutual Fund Companies used by Financial Freedom,
LLC
- Fidelity Investments
- The Vanguard
Group
- Third Avenue
- Dodge & Cox
- Davis Funds
- T. Rowe Price
Funds
- Oakmark Funds
Trust Services
Background
The transfer of wealth from one generation to the next is increasing and projections
are that this trend will accelerate at a substantial pace during the next
15 years. To maximize the wealth transfer process, Financial Firms (Fidelity
Investments) and Investment Management/Wealth Management firms (Financial
Freedom, LLC) have combined their skills to make available a comprehensive
cost effective strategy to achieve an appropriate wealth transfer/estate
planning strategy.
Fidelity Offers
a Wide Range of Trustee Services
Fidelity offers at least four specific Trustee Services as a part of the package
that is available to our Financial Freedom, LLC clients. This comprehensive
approach allows our clients and their attorneys to work with the Fidelity Trust
Attorneys in establishing a trust relationship that fits each clients specific
estate planning & trust requirements.
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