Creative Financial Design Blending the art of living with the science of financial planning peace of mind a registered financial advisor since 1984

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Creative Financial Design is an Asset, Financial, Life and Wealth management firm. For best results, we ask clients to move their assets to Charles Schwab Institutional accounts.  Our method of management and reporting is designed to coordinate clients' goals with the day-to-day management of clients' money. Creative Financial Design provides the following for its investment clients:

We believe that diversification spreads risk, that risk and return are related, and that the asset allocation decision is the primary determinant of a portfolio's risk and expected return.  We do, however, use long established economic signals and signs to tell us when to become more defensive than offensive with clients’ assets.  When justified, like that during 2008, we will and do take clients’ assets to a defensive position.

We believe that investors are better rewarded for taking risk in equities rather than fixed income. The equity allocation is diversified globally, minimizing concentrations in any one company, industry, or asset class. The fixed income allocation is composed of high quality, short-term debt instruments in order to minimize interest rate and default risk.

We believe that risk as well as return must be evaluated. When selecting the individual equity components, we choose a structured investment approach over active portfolio management. Active management attempts to beat the market through stock selection, researching and buying only stocks in those companies that the manager believes will provide superior returns. Conversely, structured portfolio management is based on the science of capital markets. The equity allocation is exposed to three risk factors that academic studies have shown to produce returns: The equity risk premium, the value premium, and the small company premium. These three risk factors can explain over 96% of an equity portfolio's variation in return. Utilizing exchange-traded funds (or ETFs), the result is a total market portfolio engineered to capture these three risk premiums with low transaction costs and portfolio turnover, plus the ability to use stop loss orders during negative economic times to help minimize risks that do not add to expected returns.

Since the asset allocation decision is the primary determinant of a portfolio's risk and expected return, we monitor portfolios to keep the allocation in balance. Rebalancing will occur when an asset class reaches either the minimum or maximum allowed range. We believe that maintaining the relationship between clients' goals and their wealth should ultimately drive the asset allocation decision. Therefore, we develop an asset allocation which we believe has the highest probability of achieving that goal. Asset allocation changes are not made in an attempt to time markets or in reaction to short term volatility. Allocation changes will occur to achieve further diversification, to improve the risk return relationship, or to adjust to changes in clients' goals.

  • Creative Financial Design’s investment philosophy is founded in Modern Portfolio Theory. We continuously review our investment philosophy. Topics include: Expected returns, interest rate risk versus reinvestment rate risk, taxes, portfolio construction, Monte Carlo probability, investment performance and ETF selection.

  • Creative Financial Design continually monitors the economic conditions in countries it has clients' assets invested in.  Based upon the results of those findings, Creative Financial Design will from time to time suggest that clients set stop losses on their investments tighter than during good or normal economic times.  These stop losses, when they go off, can cause increased client taxes and will cause the value of those assets to be put into cash and money market vehicles. Past returns are no guarantee of future returns.  When assets have been sold off, the next step is to determine when to get back into clients' normal asset allocations.

  • Clients work with a CERTIFIED FINANCIAL PLANNER™ (CFP®) practitioner through the financial planning process to create individual strategies for each client. Investments are made consistent with this investment philosophy. Portfolios are tracked against a targeted return and asset allocation. Creative Financial Design reviews the portfolios on a quarterly basis with the clients' CFP® practitioner. Clients meet with their CFP® practitioner at least on an annual basis to review and update their plans.

  • Creative Financial Design will invest all dollars without receiving any commission.

A Registered Investment Advisor Since 1984