Our Business Principles

The 12 Cornerstones of Our Fee-Based Asset Management

Preferred Planning Concepts, LLC provides comprehensive and personalized financial advice and services for individuals, professionals and businesses. What sets us apart from other firms is our unwavering commitment to client support and satisfaction. We take the time to get to know our clients and their unique situations, and build personalized investment strategies tailored to meet specific goals. We are pleased to provide our valued clients with the following services:

Investment Research: We use Morningstar-based research and analysis in the selection of ETFs and mutual funds that could be used in client portfolios.

A Risk-Adjusted Focus: When selecting ETFs and mutual funds for a client portfolio, we focus heavily on “risk-adjusted returns.” We seek to have client portfolios reflect very attractive risk-return ratios.

Individual Asset Analysis: In addition to making asset recommendations which may include mutual funds or ETFs, we will review and analyze individual stocks and bonds that the client already owns. Once analyzed, we will discuss possible strategies for these holdings.

Multiple Layers of Risk Management: Since we are consistently focused on risk control, we provide our clients with four layers of risk management:

  1. The client completes and signs a detailed ‘Risk Profile Analysis’ which allows us to design a portfolio around specific financial and emotional goals.
  2. We prepare a personalized ‘Retirement Cash Flow Analysis’ to ensure a client’s targeted income goals are reasonable and achievable.
  3. We select mutual funds with management that has demonstrated solid performance in both Bull and Bear Markets.
  4. Ongoing ‘Fundamental and Technical’ analysis helps us evaluate the level of risk that we believe exists within the various markets and economy at different points in time.

Proactive, Ongoing Advice & Guidance: In addition to regular face-to-face client meetings, we email thoughtful and timely Economic Updates and Commentaries designed to keep clients informed, and to be used as a possible basis for a portfolio adjustment.

Tactical Asset Management: Due to the turbulent and volatile times we have seen in the stock markets since 2000, many clients seek to have us make reasonable adjustments to their portfolios (based on their unique Risk Analysis) when we believe adjustments should be made. Using a ‘Tactical Approach,’ we can be given the authority by clients to make both ‘Defensive Adjustments’ (during times when we believe that risk levels are higher) and ‘Opportunistic Adjustments’ (when we think that risk levels have stabilized or lessened).

Static Asset Management: Some clients prefer that we design a portfolio and have it stay “as is” unless something significant occurs which alters their risk profile. This is often referred to as a ‘Buy and Hold’ approach. We are still proactive in our guidance, but only make adjustments to the portfolio after we have requested and received client approval.

Retirement Cash Flow Analysis: Once retirement distributions begin, one of three scenarios will likely unfold: (A) Assets continue to grow because the earnings and growth generated by investments are greater than the amount of annual income withdrawn from those assets; (B) Assets level off because 100% of the annual interest or earnings is withdrawn to meet income and expense needs; or (C) Assets start to decline because withdrawals are more than earnings. We believe that everyone going into retirement should know which of these scenarios is most likely to occur. Our detailed and sophisticated analysis will provide that knowledge, and be updated regularly to ensure you remain on track to reach your goals.

Income Generation Strategies: At retirement, a key question becomes, “Where do I take the money from?” We will develop strategies for the efficient withdrawal of income, and review them with you and your tax advisor. We call this approach our ‘Time Bucket System of Taking Income during Retirement.’

Estate Tax Analysis: Part of the PPC Retirement Cash Flow Analysis, this particular analysis uses current tax rules to project potential transfer taxes that might be incurred at different points in time. This analysis helps plan for that contingency and opens a discussion of strategies between PPC, your CPA, and your attorney.

Insurance Analysis: Many people own Life, Health, Disability, and Long-Term Care Insurance policies that they often don’t clearly understand. What is the likelihood that the insurance policy will in fact cover the liabilities it was meant to protect you against? Our Insurance Analysis ensures that you have the coverage that is both cost-effective and appropriate for your individual situation.

Service: In addition to the experience, skill, and advice provided by PPC Advisors, clients have access to an entire team of highly experienced and service-oriented professionals ready to assist when questions arise, and to address your needs and issues with thoughtful consideration and care.

Please contact us to discuss any of these services in further detail.