Six Pillar Process
For Financial Wealth Management
Helping Investors Avoid Actions
That Can Separate Them From Their Wealth
Our "client first" tradition at Abel Financial Services is simple: Our professionals always act in the best interest of our clients. As independent financial advisors, our advice is objective and unbiased. There are no proprietary arrangements to sway our focus from our clients dreams and desires.
"Investing is most intelligent when it is most businesslike."
- Benjamin Graham, The Intelligent Investor
Warren Buffett calls these words by Benjamin Graham "the 9 most important words ever written about investing."
"The vital role of the Six Pillar Process is to help you invest in a businesslike manner."
- Leo Abel
You Gain Assistance To Prevent Behavior That Is Emotional.
It helps to eliminate the classic mistakes that have afflicted investors over the centuries, such as being controlled by group think or falling under the sway of the media's "end-of-the-world" prognostications.
Simply, the Six Pillar Process assists you in basing decisions on sound business practices rather than on hope, current sentiment, or trend chasing.
Nick Murray discusses these concepts as a way to improve investor behavior. (The Six Pillars include some of the ideas and concepts found in Nick Murray’s book Behavioral Investment Counseling in Chapters 4-6. Copyright 2008 Nicholas Murray.)
Through years of study and investing Leo Abel developed his own process, the Six Pillar Process, based on investment behavior.
Leo draws upon the collective wisdom of investment masters throughout history. He says of the process, “The first time I learned of the idea of focusing on investment behavior, I knew how valuable it would be in helping investors act in ways consistent with methods employed by the legends of investing.”
Leo Abel's Six Pillar Process for wealth asset management encompasses three time-tested principles along with three sound practices that can make a difference for our clients.
The Three Principles
Faith in the Plan - The practices begin with a plan -- your customized plan -- designed for the realization of your financial goals. It's a plan to trust and rely on as you face the unsettling ups and downs of the economic climate.
Patience - "Investing is a marathon not a sprint," Leo said. "Being a smart investor requires patience. Sometimes you have to step aside and give the time-tested strategies a chance to work out."
Discipline - This is the vital ability to adopt a plan and stick to it. Then, your emotional responses do not rule.
The Three Practices
Asset Allocation -
Asset allocation is the most important portfolio management decision you can make. Studies such as the Brinson study (Gary P. Brinson, Brian D. Singer, and Gilbert L. Beebower in "Determinants of Portfolio Performance II: An Update," Financial Analysts Journal, May/June, 1991) show that more than 90% of the performance of portfolios comes from asset allocation.
Diversification -
"Here is where we concentrate our best thinking about how to populate your portfolio," Leo Abel said. "Most of the investments I recommend, I own right alongside my clients. In the past these investments have demonstrated an ability to provide superior results over extended periods of time. The talent and methodology that generated those results remain in place."
Rebalance -
We rebalance portfolios once annually to insure adherence to clients’ asset allocation strategies. "We constantly monitor each element of the account," Leo continued, "to ensure that each piece of the pie continues to represent our very best thinking."
To discover more about how the Six Pillar Process for Financial Wealth management can help you invest in a businesslike manner, please contact us.
Diversification and asset allocation do not assure a profit or guarantee against loss in declining markets. Rebalancing a non-qualified account may be a taxable event.
