During a discovery interview, we'll learn about your family, any unique needs, your current lifestyle and expenses, and your financial goals.
A copy of your most recent tax return will quantify the tax impact you'll need to overcome to net enough money to meet your goals. If our review of your return uncovers planning opportunities inherent in the complex tax code, we'll include those strategic thoughts in your plan.
While reviewing your assets, we'll point out the strengths and weaknesses in your current investments, and suggest ways to modify and improve your portfolio.
The interest you pay over the full term of a loan can add up. If it makes sense to refinance or pay off your debts, we'll share those thoughts in your plan.
Your plan will consider the types and amounts of life, disability, and long-term care insurance needed to protect your family. We can then evaluate your current coverage to be sure it addresses these needs and that it is competitively priced in the marketplace.
Workplace retirement plans and state-based education savings plans offer tax-advantaged ways to accumulate toward these goals.
The goal of the financial plan is to understand the surpluses and shortfalls over your lifetime. We help you determine how much money you need to set aside during your high-earning years so that you can remain comfortable as your sources of income change in your later years. Your plan should provide insight into how hard your investments need to work, and guides us in the selection of investments to meet your required rate of return.
Once you know how various combinations of saving and investing can affect your future, we believe you'll make sound life and investment decisions and then stick with them.Meet The Buttonwood Team
Over the long‐term, the two drivers of returns in the stock market are profits and changes in investor sentiment. Every day, companies open their doors to provide goods and services. After all expenses are accounted for, any remaining profit is for the benefit of the owners. This profit has value, especially if it is expected to recur long into the future. The job of an investor is to understand this value.
The other driver is investor sentiment. Sometimes investors are optimistic about company prospects, and other times despondent. These unpredictable swings in mood can drive prices wildly around a reasonable notion of fair value. While there is no way to control this volatility, you can take advantage of the opportunities it creates.
￼Our investment management services are based on the concept of value investing, a timeless and disciplined approach that focuses on the intrinsic value of a company relative to its stock price. Value investing is a know‐what‐you‐own approach.
We review company financial reports to gain an in‐depth understanding of how companies make money, their competitive standing, and quality of management. We look for companies that generate plentiful cash, have well defined growth prospects, proven management, and products or services with enduring appeal. When we uncover good businesses trading at attractive prices, we act for the benefit of our clients.
Up and down is okay; down and out is not. That is why it is important to focus on established businesses that are past the proof-of-concept stage. Paying special attention to financial conditions can also make the difference between short-term volatility and permanent losses. Well-financed companies that have manageable debt levels, healthy cash balances, and robust cash flow can ride out tough economic conditions. Businesses that have high amounts of debt and spotty profits often perish when times get tough.
Larger companies with well-established operations often enjoy relatively stable operating results. Despite this, investors routinely drive prices well above or below reasonable notions of fair value. In this example, the blue line tracks the cash flow of a company, and represents a notion of fair value for its stock. Blue and gray bands above and below are reasonable ranges for fair value that incorporate varied assumptions. By focusing on the cash flow companies are able to produce, it is easy to see value when pessimism is at its strongest. Likewise, it becomes easier to avoid getting caught up in overly optimistic assumptions too.
We can be highly selective when picking from among the more limited number of larger companies. Achieving adequate diversification and representation among larger companies does not require hundreds of investments. We focus on quality businesses and then insist on a rational price.
At Buttonwood Financial Advisors, we help clients to strike a balance between security and growth. We dig deep to uncover the potential of individual companies as growth investments, while we also recommend the use of cash and bonds to serve as a buffer for short-term needs. A portfolio consisting largely of stocks may be appropriate for our clients still in the workforce. Many of our retired clients make regular withdrawals from their portfolios, so a combination of stocks, bonds, and cash means they don't have to rely solely on the whims of the stock market to pay their expenses.