In the course of our new client engagements, we analyze many different portfolio’s which had originally been presented to the client as “managed”. Although the definition of managed is a bit vague, it is reasonable to say that a managed account is overseen by an investment professional who charges separate fees for services rendered. Within the framework of these managed accounts, investment management fees are charged, typically, as a percentage of total assets. Honestly, many portfolio’s we see appear to be pre-constructed allocations which operate autonomously in accordance with algorithms. These allocations were created in the home or corporate offices, in many cases. At face value, it certainly appeared that the adviser with whom they were working had almost nothing to do with how their money had been invested as the months and years passed.
We could recite actual cases which illustrate the “indifference” of garden-variety computer algorithms. For example, 2008 can be remembered as the most punishing year in the investment markets in our lives; at least we hope. In early 2009, we had occasion to review historical activity of a big-name investment firm whose computer algorithms sold absolutely nothing during that debacle. The fact that the markets rebounded in 2009 doesn’t excuse the fact that management fees were charged, though it could be argued no evidence of asset management existed. If the computer had not been programmed to at least attempt to protect capital during 2008, just when would it execute trades to pull money from the markets? On Wall Street, the selloff happened because the institutions and ultra-wealthy liquidated huge volumes of their holdings. Meanwhile, that client, and perhaps John Q. Public at-large, was left holding the bag…and got charged fees, on top of it!! We can only hope that you didn’t experience anything similar (yet).
So, what makes Toomey Investment Management (TIMI) different? TIMI operates as a fiduciary investment firm. We work for you and we do our best every day, to find the best solutions for you and your family. Purely from an investment management perspective, we are the accountable party in your relationship with us. We research and design portfolio models at our offices….not someone in a distant back office who has never met you. We monitor the portfolio components every day. And we have a history of acting and reacting to attempt to preserve capital in rocky environments. Though it’s an imperfect science, we do not just watch while Wall Street sells off.
Additionally, we are tax preparers and advisers, too. It has been an incredible benefit for our clients when we can tailor guidance around IRS implications. We are also involved with most types of insurance; life, medical, long-term care and we work closely with an auto and homeowners agent. From our offices, we have coordinated and assisted our clients with advanced strategies including Wills, Trusts and Medicaid planning.
So when you’re assessing financial advice, I ask you, is an algorithm good enough? Our business was designed to look at each client independently and at many financial levels….a hands-on, personal approach. Within one firm, you will receive customized portfolio design and management, tax analysis, insurance review and assessment of possible advanced strategies which may benefit you and your family….and you will actually be working with one firm that can complete all of it!!
Securities Offered Through Leigh Baldwin & Co., LLC