4th Quarter 2025

As I write this letter, I am cruising 30,000 feet over the earth and travelling roughly 500 miles per hour from Dallas to San Jose. I have full faith that the pilots in the cockpit have mapped out a plan, are executing that plan and making adjustments as needed with the goal of the landing the plane safely at our destination. I have no clue what buttons they are pushing or what they are saying to air traffic control, how they will react if unexpected turbulence arises but what I do know, is that these two pilots are well trained professionals. Hired by the airline and ultimately by me to achieve my objective of safely getting me back to my family.

This arrangement is not that much different than our relationship. You have hired my crew to create a plan, execute and monitor the plan and make adjustments to help achieve your goals. So, let’s unlock the cockpit door and learn about the behind the scene process we go through to make sure you are on the right flight heading to the right destination.

Step 1: Determine the destination

Very similar to pilots, when we are creating a financial plan, we need to determine where you want to go. Are you saving for retirement, a house, college, a car, charity, or a multigenerational legacy? Once we know where you want to go, we review all the investment options and determine which best suits your needs and goals. We pull out the maps, pick the plane, file the flight path, consult with air traffic control and make sure we have a clear and concise route. We present the plan to you so you can sign off on the tools we will use to help get you to your destination.

Step 2: Take Off

Everyone take your seats, stow your luggage and buckle your seatbelts. We are expecting a smooth flight but now might be a good time to review your risk tolerance level. You’ve got your seatbelt on, but how bad does the turbulence have to get before you are banging on the cockpit door forcing the pilots to land? If you are not comfortable with the risks involved in the portfolio we have created, even with your seatbelt on, now would be a good time to make adjustments.

Step 3: Cruising Altitude

Though we are expecting a smooth flight, we ask that you please keep your seatbelt on just in case we run into some unexpected turbulence. We will be in constant communication with air traffic control and making adjustments to the flight plan as necessary. Also, we will be as fuel efficient as possible but if we find out there is a tail wind we can take advantage of, we will. We have implemented your portfolio after doing extensive research on our preferred investments. We consult with Morningstar and Cetera Investment Management for mutual fund research, CFRA for stock research and our own proprietary analytics for our dividend paying stock analysis. We continuously monitor the portfolios, rebalance when appropriate and perform tax advantageous trades on non-qualified accounts. According to Edward Qian of PanAgora Asset Management*, a rebalanced 60% stock / 40% bond portfolio outperforms a non-rebalanced portfolio over the long run. That’s why we do it.

Step 4: Preparation for Landing

In preparation for landing, we kindly ask that you stow your tray tables and return your seats to their full and upright position. In other words, let’s make sure your estate planning documents are in order. Are all your non-retirement assets in a trust? Your house, cars, rental properties, jewelry, etc.? Are the people you delegated to handle your affairs willing to perform the duties required of them? Are they still alive? These are conversations you should be having now, and we are here to help. What about beneficiaries? When was the last time you checked them? Are they still alive? Do you still have the same relationship with them as you did when you set up your estate planning documents? What about charities and the idea of leaving this world behind a better place than you left it? All great ideas to think about and discuss with your family and pilots.

Step 5: Landing Time

It’s been a great flight with minimal turbulence, no major course corrections and we are ready to land. Nobody likes a hard landing and with enough planning and finesse we can touch down smoothly. It’s the same thing in life and death. The more we plan and communicate, the easier the transition of one’s estate will be to your heirs. If your heirs have not met us, let’s set up a meeting. If they have met us, let’s set up a meeting. The more everyone is on the same page about wealth transitions, the easier they are. Nothing is worse than losing a loved one and not having an estate plan in place or leaving something or someone out. What about your cell phone and applications passwords? Are they written down somewhere so your heirs can gain access to your things? I suggest writing down all the companies you do business with along with telephone numbers, addresses, emails, usernames, passwords etc. Distribute this information to your heirs and make sure they keep it in a VERY safe place.

Step 6: Departure

Always remember to thank your pilots. As I mentioned before, you may not always know what they are doing in the cockpit, but behind the scenes they are working in your best interests to provide you with a great experience while you are on their plane. We also are working hard behind the scenes to make sure you are having a great experience working with us. Last, but not least, give your loved ones a hug and a kiss and tell them you love them often because you never know when it will be the last time you can do it. Thank you for being such wonderful and loyal clients. We truly appreciate working with you every day.

* Qian, Edward E., A Mathematical and Empirical Analysis of Rebalancing Alpha (October 1, 2014). Journal of Portfolio Management, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2543705