Category: Advisor Content
Author: John Brown
An Overview of Exencial’s E3 Process
By John Brown, Senior Wealth Advisor/Portfolio Manager
Our core philosophy at Exencial Wealth Advisors is “Integrated beats fragmented.” This means we can provide the best advice only when we have fully engaged clients who are willing to freely share information and exchange ideas. This philosophy is at the heart of our E3 process.
E3, shorthand for “Evaluate, Execute, Evolve,” is more than a continuous improvement process – it is a guiding principle for our firm. So what exactly does E3 mean? Let’s look at each part.
1. Evaluate. The first step in our process is to gain a thorough understanding of each client’s specific situation and goals, both financial and personal. During this phase, we use what we call a FORM analysis. Over the years, we have learned that our clients tend to set goals in three major areas: Family, Occupation and Recreation. These objectives drive a plan to create enough Money – in the right vehicle, at the right time – to achieve those goals. Our job as advisors is to assist in this self-discovery, enumerate those goals and fully evaluate our clients’ means to achieve them.
2. Execute. Integrated financial and investment planning is a complex process that takes time. A great plan forgotten in a drawer is like having no plan at all. Crisp execution is critical. We manage our clients’ strategies in a fully integrated way, with our advisors coordinating a flow of information between the investment, tax and estate planning teams. We give our clients frequent feedback and meet periodically to assess their plans.
3. Evolve. Life often has its own plan. We know changes to our clients’ financial
situations will come, some positive and some negative. A static plan can
become outdated very quickly. To proactively get ahead of any major changes, we
use known life junctures to prompt a reassessment of our clients’ financial
paths. The birth of a child or grandchild, an impending wedding, a chance to
retire early, a significant illness – there are hundreds of reasons a plan
should be adjusted. We evolve our approach as needed, creating a flexible plan
that grows and changes with our clients’ lives.
E3 permeates Exencial, from our guiding philosophy to our work processes. For instance, our investment strategies follow their own form of E3. We Evaluate clients’ money goals and create a model portfolio for each client tailored to their needs. We Execute trades to keep clients in model, and occasionally Evolve the model based on market expectations or changing plans. This cycle greatly improves our ability to provide the strategic planning needed to meet our clients’ familial, occupational and recreational goals.
PAST PERFORMANCE IS NOT AN INDICATION OF FUTURE RETURNS. Information and opinions provided herein reflect the views of the author as of the publication date of this article. Such views and opinions are subject to change at any point and without notice. Some of the information provided herein was obtained from third-party sources believed to be reliable but such information is not guaranteed to be accurate. In addition, the links provided within are for convenience only and the provision of the links does not imply any sponsorship, endorsement, or approval of any of the content. We do not guarantee the content or its accuracy and completeness. The content is being provided for informational purposes only, and nothing within is, or is intended to constitute, investment, tax, or legal advice or a recommendation to buy or sell any types of securities or investments. The author has not taken into account the investment objectives, financial situation, or particular needs of any individual investor. Any forward-looking statements or forecasts are based on assumptions only, and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. Any assumptions and projections displayed are estimates, hypothetical in nature, and meant to serve solely as a guideline. No investment decision should be made based solely on any information provided herein and the author is not responsible for the consequences of any decisions or actions taken as a result of information provided in this book. There is a risk of loss from an investment in securities, including the risk of total loss of principal, which an investor will need to be prepared to bear. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable or suitable for a particular investor’s financial situation or risk tolerance. Exencial Wealth Advisors, LLC (“EWA”) is an investment adviser registered with the Securities & Exchange Commission (SEC). However, such registration does not imply a certain level of skill or training and no inference to the contrary should be made. EWA may only transact business in those states in which it is registered, notice filed, or qualifies for an exemption or exclusion from registration or notice filing requirements. Complete information about our services and fees is contained in our Form ADV Part 2A (Disclosure Brochure), a copy of which can be obtained at www.adviserinfo.sec.gov or by calling us at 888-478-1971.