Transcript Slide 1

Matthew T. Lekushoff, CIMA®
Trusted Partner Committed to Your Financial Well Being
RAYMOND JAMES
Securities are offered through Raymond James Financial Services, Inc., member FINRA/SIPC, an independent broker/dealer, and are not insured by FDIC, NCUA, any other government
agency or financial institution insurance, are not deposits or obligations of the financial institution, are not guaranteed by the financial institution, and are subject to risks, including the possible
loss of principal. Abel Financial Services, Inc. is not affiliated with Raymond James Financial Services, Inc.
Our Mission
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We serve a limited number of clients who understand the
value of having a dedicated and trusted financial advisor to
help them and their families achieve financial peace of
mind.
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Our success is based on offering something others do not, a
client experience that is unmatched in terms of
communication, service and education.
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Our clients can expect not only a personalized approach to
financial planning but a professional relationship that they
will find enriching and valuable.
Overview
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Who Do We Serve
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How Do We Serve
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Our Financial Planning Team
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Who is Raymond James
Who do we serve
Business
Professionals
 We understand the needs
and stresses of today’s
successful professional.
Medical
Professionals
 We help health
professionals structure
their finances to benefit
from their unique tax
advantages.
Business
Owners
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We specialize in
crafting customized
financial solutions for
the business owner.
How we Serve
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Our Advisory Process
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Building and Monitoring Portfolios
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Managing Client Advisory Relationships
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What Makes us Different?
Our Advisory Process
 We employ a disciplined
process to craft solutions
designed to meet the
needs of our clients.
Understand
Organize
& Design
Monitor
Implement
Portfolio Construction
A Disciplined Approach to
Building and Preserving Wealth
Why is portfolio construction so important?
Answer: Investors Have Underperformed Benchmarks
Annualized Returns
1986–2005
11.9%
9.7%
3.0%
S&P 500
Inflation
3.9%
1.8%
Average
stock-fund
investor
Past performance does not guarantee future results.
Source: DALBAR, Lehman Brothers, Standard & Poor’s and AllianceBernstein
Lehman
Average
U.S. Agg. bond-fund
Bond Index investor
Individual Investor Behavior
Net Flows by Broad Investment Categories at Major Inflection
Points in the Market
Greed
2000
$262.80
Fear
2002
Investors have
historically added funds
to asset classes that
have performed well
recently, often as those
asset classes are taking a
turn for the worse.
(-$49.90)
Stocks
Bonds
$140.50
(-$29.10)
Stocks
Bonds
THE RESULT: Many individuals investors buy high
and sell low.
Past performance does not guarantee future results.
Why Asset Allocation matters?
Asset allocation decisions are among the most
important factors affecting total portfolio volatility.
Factors in Portfolio Volatility
Market Timing
Asset Allocation
Decisions
91.5%
Stock Selection 4.6%
Other
Source: Brinson, Singer and Beebower (1991)
Fiftieth percentile mutual fund returns can be attributed to its investment discipline
1.8%
2.1%
Tracking “How much is enough?”
Uncertain < 75%
• Not Saving enough
• Inappropriate
Allocation based on
long term goals
100%
95%
90%
85%
80%
75%
70%
65%
60%
55%
50%
45%
40%
35%
30%
25%
Sacrifice >90%
• Saving too much
• Spending too little
• Taking on too much
Investment Risk
Uncertain
Comfort
Sacrifice
Confidence & Comfort (in “balance”)
High level of confidence and Peace of Mind
How do we track “How much is enough?
Central to the Wealthcare process is the Confidence calculation. This analysis simultaneously evaluates your goals,
your investment allocation and your assets to determine how confident you can be that your goals will be met. The
Wealthcare process subjects your goals and investment strategy to this sophisticated ‘stress testing’ process which
simulates 1000 market environments, both good and bad. Your Confidence or Comfort is the percentage of the 1000
simulations that achieve your goals. For example, if you achieved all of your goals or more in 830 of 1000 tests your
confidence is 83%.
Portfolio Construction
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Step 1: Determine Client’s Risk Tolerance
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Step 2: Analyze Economic and Market Conditions
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Step 3: Combine Low-Correlation Assets
Globally Diversified Equities
Utilize Real Assets: REITs and Commodities
Allocate Market Neutral Investments
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Step 4: Rebalance Portfolios
Large and Small Company Investing
Year-End 1969 – 2006
$1,000
Small Value
Large Value
$100
Small Growth
Large Growth
$10
$1
$.10
1969
1975
1981
1987
1993
1999
2005
This artHypothetical
is for illustrativevalue
purposes
only
and not indicative
of any
investment.
• An reinvestment
investment cannot
made directly
an index.
of $1
invested
at year-end
1968.
Assumes
of be
income
and nointransaction
costs or taxes.
Past performance is no guarantee of future results. March 1, 2006 • Source: Created by Raymond James using Ibbotson Presentation
Materials © 2006 Ibbotson Associates, Inc. All rights reserved. Used with permission.
Ending
Wealth
Average
Return
$233.88
15.4%
$53.95
11.1%
$27.70
$27.61
9.1%
9.1%
Stocks, Commodities and Real Estate
Year-End 1985 – 2005
$100
U.S. Stocks
Commodities
International Stocks
Real Estate
Ending
Wealth
Average
Return
$9.52
$7.83
$6.72
$4.64
11.9%
10.8%
10.0%
8.0%
$10
$1
$.10
1985
1990
1995
2000
Hypothetical value of $1 invested at year-end 1985. Assumes reinvestment of income and no transaction costs or taxes.
This art is for illustrative purposes only and not indicative of any investment. • An investment cannot be made directly in an index.
Past performance is no guarantee of future results. March 1, 2006 • Source: Created by Raymond James using Ibbotson Presentation
Materials © 2006 Ibbotson Associates, Inc. All rights reserved. Used with permission.
2005
Commodities in a Portfolio
Historically Low Correlation with Other Asset Classes
1.0
1.00
Total return correlation 9/30/96 to 9/30/06
0.8
A figure of 1.0 equals perfect positive correlation. A
figure of -1.0 equals a total negative correlation.
0.6
0.4
0.2
0.01
0.0
-0.2
Commodities
-0.02
-0.03
US Stocks
Real Estate
(REITs)
0.03
-0.08
International
Stocks
Bonds
Past performance is no guarantee of future results.
Source: Morningstar, Inc. as of 9/30/06. Correlation is a measure of the degree to which two variables are related. Commodities are represented
by the GSCI. US stocks, real estate, international stocks, bonds and cash are represented by the S&P 500, MSCI US REIT Index, MSCI EAFE Index,
Lehman Brothers Aggregate Bond Index and the 3-month Treasury bill, respectively.It is not possible to invest directly in an index. Index returns
assume reinvestment of all distributions and do not reflect the expenses, fees or taxes of managing a mutual fund.
Cash
Commodities in a Hypothetical Portfolio
Performed Well When Interest Rates Increased, 12/31/75-12/31/05
25%
20.6%
20%
15.2%
15%
13.4%
Commodities
Stocks
Bonds
11.5%
10%
7.3%
5%
2.4%
0%
Years when interest rates declined
Years when interest rates increase
Performance is historical and does not guarantee future results. The graph above is for illustrative purposes only
and does not represent the performance or risk of any DWS product. Source: Morningstar, Inc., as of 12/31/05. Stocks
and bonds are represented by the S&P 500 Index and the Lehman Brothers Aggregate Bond Index, respectively.
Commodities are represented by the Goldman Sachs Commodities Index. The indices include reinvestment of all
distributions and do not reflect the fees, taxes or expenses involved in managing a mutual fund. It is not possible to invest
directly in an index.
Disciplined Rebalancing: Buy Low and Sell High
Our Rebalancing Discipline Helps
to Buy Low, Sell High
As an asset class/style
outperforms,
trim investment
Sell
Upper trigger
Outperform
Strategic target
Underperform
As an asset class/style
underperforms,
add to investment
Buy
Lower trigger
Commitment To Clients
Commitment to Service
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Portfolio Review Meetings
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Economic and Market Review
Account Performance Review
Statement of Investment Policy Review
Portfolio Risk Analysis
Portfolio Adjustment and Strategy Discussion
Financial Plan Review Meetings
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Net Worth and Goals Updated
Updated Financial Plan Discussed
Confirm Portfolio Risk is Consistent with Financial Goals
Portfolio Risk Analysis
Commitment to Communication
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Research and Comment
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Quarterly Newsletter
Regular Phone Calls
Regular E-mails (Articles, Research, Comments)
Diversified Investor (Quarterly)
Planning Ahead (Bi-Annual), Performance Reporting
Education and Social
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Financial Presentations
Cultural Event
Gastronomic Events
What Makes Us Different?
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Proactive contact when changes impact a client’s financial life
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Take the time to understand our client’s needs, goals & attitudes
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Develop comprehensive financial plans
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Create portfolios that match client’s financial planning goals
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Regularly update client’s portfolio and financial plans
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Help organize our client’s financial documents and investments
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Access to Raymond James’ vast resources in both Canada & US
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Work with and have access to financial professionals in other fields
Our Financial Services Team
Matthew T. Lekushoff
Diane Nguyen
Financial Advisor
Sales associate
Andrea Thompson
Natalie Korol
Financial Planner
FP Assistant
Who is Raymond James?
Raymond James applies sound, conservative business practices as it functions as a
broker/dealer in the financial services industry, and the firm and its affiliated advisors never
forget the primacy of the founding principle – placing clients’ needs and aspirations at the head
of the list of concerns. Whether markets are volatile or calm, whether investment choices are
complex or straightforward, and whether financial goals are forthright or intricate, our clients
know the comfort and satisfaction of having a steady partner at the wheel.
Thank you for your time.
For more information click the link for our website.
www.Matthewlekushoff.ca