Customized Client Risk can be achieved through an appropriate mix of Berunda Strategies and Bond Ladders
One of the most important aspects to our investment process is determining a client’s individual risk appetite and their historical experience with asset returns. We typically begin a comprehensive analysis of the client’s existing portfolio (using their historical statements and holdings) and then pay special attention to our clients’ responses to our recommendations and actions they can take based on their current portfolio. This is done on as needed basis (typically once a year, not just once at the beginning of the client relationship). Indeed, sometimes prospects may not be a perfect fit fo our firm based on our analysis and we believe that other advisors or asset classes outside of Berunda may fulfill their needs better.
Next, we customize individual client risk across the lifetimes of our clients through a comprehensive annual risk questionnaire, taking into account the client’s age, retirement goals and risk aversion. We also take into account their investment portfolios across various platforms such as their 401(k)s and IRAs, not just our portfolio allocation. Next, we sit down with each client to determine what mix of Berunda strategies and/or bond ladders may be appropriate for each client. Below is a chart showing the risk/return tradeoff (based on 2004-2022 returns) and typical client percentage allocation recommendations, while recognizing that some clients may wish to over-ride our recommended percentage choices.
As seen above, a typical recommendations would be a 100% Berunda strategy allocation for a young professional, while a more conservative 50-50% to Berunda strategy to Bond ladder may be recommended for someone closer to their retirement age.