Dunn Financial Advisors is a financial planning and investment advisory firm that provides comprehensive financial planning and investment advice to individuals, families, and small businesses.
Our services range from a comprehensive financial plan to a financial checkup to answering client specific questions.
People seek a financial advisor to solve financial problems, verify their own existing thought process with a professional, or to delegate financial issues to an advisor so they can concentrate on other aspects of their lives.
The key questions we ask and help clients to resolve are:
- where are you now?
- where do you want to go? and
- how will you get there?
We offer personal and business financial planning. The components of those plans are listed below.
Personal Financial Planning
A comprehensive plan includes:
- Goal Setting
- Cash flow analysis and management
- Balance sheet analysis and management
- Risk Management and Insurance analysis
- Income Tax planning
- Investment planning
- Retirement planning
- Estate planning
Related issues on a personal financial plan may include college planning, incentive stock options, non qualified stock options, charitable giving, trusts, and other related matters.
Business Owner's Financial Planning
- Valuations of closely held business
- Arrange for family business transfers
- Plan for the sale of a closely held business
- Design and implement executive compensation and retirement plans
- Design and implement employee compensation and retirement plans
- Acquire new loans or venture capital financing
- Develop buy/sell agreements to provide for the sale of a business if an owner dies or becomes disabled
- Develop insurance programs for life and disability insurance on business owners and key executives
- Structure substitute creditor agreements to deal with debt on the death of a business owner
Related issues on a business financial plan may include seminars held for employees on retirement plans to comply with ERISA requirements.
Investment Philosophy
Our goal is to help you achieve your financial goals within your risk tolerance and time horizon. Some clients may need to maximize their total return to achieve their goals while other clients may need to preserve their capital and live on the income from that capital. We will discuss with you your needs and risk tolerance and then develop a specific investment strategy to help achieve those goals. In addition, we will try to match investment gains and losses to minimize your taxes.
According to academic studies, choosing the proper asset class is the dominant determinant of a portfolio’s total variance. Asset classes are defined as equities (stocks), fixed income (bonds), or cash (money market accounts, T-bills, commercial paper, short term CDs) with further subdivisions based on value or growth, foreign or domestic, and large or small. A study by Gary Brinson (1991) shows that approximately 91.5 percent of a portfolio’s variance is choosing the correct asset class, 4.6 percent is choosing the correct security, 1.7 percent is choosing the correct time to invest, and the remaining 2.2 is an unknown or error factor. Thus picking the correct asset class is a major factor in a total portfolio variance. Further studies show that asset allocation accounts for 40 to 60 percent of the total return depending on the parameters of the study. A clarification report by Ibbotson and Kaplan (2000) show that asset class selection accounts for about 90 percent of the variability of returns and about 40 percent in the total return. A study by Drobetz and Kohler concluded that asset allocation explained about 60 percent of the total return.
We believe that most investors will benefit in the long run from a well diversified portfolio. We do not believe in market timing since no study has shown that market timing works over long time frames. We can help you keep investment expenses down, minimize expense ratios, minimize transaction costs, and minimize portfolio turnover that affects costs.
As an investment advisor, we have access to institutional money managers and funds that are not available to retail investors. We also employ Nobel prize winning modern portfolio theory strategies and investment vehicles which are available only to fee only advisors.
We hold client accounts at the Institutional Division of Charles Schwab & Co., Inc. Schwab Institutional provides high quality, discounted services for investment advisers and their clients. (We will consider other custodians that can provide comparable services.) We strive for the highest level of personal service and client satisfaction.
Getting Started
We offer an initial meeting at no cost to get to know you, listen to your needs and hear what you hope to accomplish with a financial planner. We will determine if we can add value to your situation. At the same time, we would hope that you would ask us questions to see if you are comfortable with our thought process on areas of concern to you. Together, we can determine if Dunn Financial Advisors is an appropriate advisor to meet your needs.
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