The MDE Group employs sophisticated analyses at every step of the process, but we never blindly follow the results. Instead, we give careful consideration to our recommendations and apply judgment based upon our Investment Committee's 100 years plus of cumulative experience as well as an understanding and appreciation for each client's personal circumstances. In this way, we make sure that all of our recommendations are appropriate for each specific client.
Step 1: Holistic Planning
Engage clients on a personal level in the development of a comprehensive, holistic financial plan focused on meeting our clients' unique goals and objectives.
Step 2: Risk Tolerance Assessment
Work with our clients to determine their aversion to volatility, i.e., the ups and downs in their asset values, consistent with the likelihood of reaching their goals under different scenarios.
Step 3: Asset/Style Allocation
Determine the percentage of a client's assets to be diversified across the various asset classes, e.g., cash, equities, fixed income, hybrids, and alternatives, in accordance with their risk tolerance assessment. The resulting asset allocation can be the most important determinant of the success of a client's plan.
The next most important determinant is the percentage of a client's assets to be diversified across the various investment styles within asset classes, e.g., growth versus value, large cap versus small cap, domestic versus international. The MDE Group works with our clients to determine allocations that are most likely to help them to reach their goals with a level of risk that meets their personal tolerance for volatility.
The next most important determinant is the percentage of a client's assets to be diversified across the various investment styles within asset classes, e.g., growth versus value, large cap versus small cap, domestic versus international. The MDE Group works with our clients to determine allocations that are most likely to help them to reach their goals with a level of risk that meets their personal tolerance for volatility.
Step 4: Manager Selection
Our clients' personal advisors build client specific portfolios, consistent with The MDE Group firm guidelines. Personalized client portfolios are built by selecting among the separate accounts, mutual funds, investment partnerships, and other solutions, across all asset classes, which have undergone a rigorous due diligence process by our seven-person Investment Committee.
Step 5: Asset Location
The asset location decision is the determination of how and where assets should be titled to optimize their value from the perspective of both income and estate tax minimization. Proper asset location, e.g. whether an investment should be titled in a taxable or tax-advantaged account, in personal name versus a trust or partnership, etc., can make a significant contribution to the overall success of our long-term strategies.
Step 6: Client Reporting
Clients always have access to and knowledge of their portfolio positions and/or performance in a time and manner most appropriate and comfortable for them. Client account access is available as follows:
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- Daily positions and account balances through www.mdegroup.com and custodial web site
- Monthly performance, positions and account balances through www.mdegroup.com; positions and account balances only through monthly custodial statements
- Quarterly performance, positions and account balances through The MDE Group's proprietary reporting package as well as www.mdegroup.com
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Step 7: Continuous Review
After we have implemented an investment plan for our clients, we continuously monitor and review the portfolio to make sure that their portfolio stays in line with their long-term plans and needs. Each personal advisor receives weekly client reports of portfolio allocation and performance by asset class in comparison to market and firm wide performance.
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