Financial Planning also provides fee-based investment management
services. Our approach provides you with a diversified, professionally
managed investment portfolio with access to low-cost investments and
simplified recordkeeping, performance, and tax reporting.
The first and most important step in developing a client’s investment
portfolio is to determine the overall asset allocation among different
classes of cash, fixed income, and equity investments. This asset
allocation is based on a client’s individual risk tolerance, tax
position, time frame, and other parameters. This approach is used
extensively by large pension funds and other professionally managed
After the overall allocation is determined, individual investments are
selected for the different asset classes primarily using mutual funds. Screening and
selection criteria include past performance, risk-adjusted performance,
manager tenure, expenses, and tax-efficiency.
Portfolio performance is monitored quarterly, with occasional changes to
rebalance the overall portfolio, or to change an investment manager if
warranted. Parker Financial Planning generally has a "buy and hold"
approach, and does not engage in market timing, which can hurt
Parker Financial Planning does not take custody of a client’s accounts.
Instead, PFP will assist the client in opening an account at a discount
brokerage. This has the advantage of very low or no cost access to
mutual funds and individual securities, and simplified accounting and
tax record keeping.
We generally have a $500,000 minimum to establish investment management