LVM process

Our Approach

Begins With You

LVM Capital specializes in customized wealth management using individual securities, wealth transfers, tax reduction and philanthropic planning with an investment philosophy that is built to articulate and optimize personal financial goals, control risk and maximize returns. Since each client's financial goals and objectives are unique, the first and most important step in our process is learning about our clients, and understanding their needs and values in order to design a financial plan and portfolio that is right for them.

Getting to Know You

Our professionals work closely with prospective clients to help both parties develop a keen understanding of how LVM Capital can add value to each client’s unique set of circumstances.

Discovery Process
Through an informal, face-to-face discovery process, we learn what prompted the prospects to seek our services, which helps deepen our understanding of their goals, values and concerns. With the information gleaned in this meeting, we are able to develop a strategic plan to address those concerns and achieve their goals.

Wealth Diagnostic Report
LVM Capital’s financial plan may include a custom wealth diagnostic report that provides a clear snapshot of the client's existing portfolio, its asset allocation, diversification, correlation of assets and valuation characteristics. This report also includes our strategic insights and recommendations to help our clients best achieve their unique objectives.

IPS/Contract
The final step in becoming an LVM Capital client is drafting the Investment Policy Statement which is customized for each client and establishes expectations, objectives and guidelines of the investment management process.

Moving Forward

LVM Capital does not custody our clients' assets – instead, we avoid any potential conflict of interest by recommending low cost custodians to all prospective clients and facilitate asset transfers with tax efficiency top of mind. Once a prospect has signed on as a client we request copies of tax returns, information on all financial assets, net worth statements, copies of trust documents and life insurance policies in order to design a wealth management plan and investment portfolio that is based on the most comprehensive understanding of our clients’ financial universe as possible.

Customized Wealth
Management Process

Your wealth management team is comprised of both CFAs (Chartered Financial Analysts) and CERTIFIED FINANCIAL PLANNER™ practitioners who together will create a personalized, strategic plan – a financial road map that shows where your assets stand today in relation to the financial goals you seek to achieve. This guides you down the most appropriate wealth management path to help you reach your overall investment objectives.

This document will encompass all initial discussions and feedback, as well as specific recommendations on future tax and estate planning. It will also comprise net worth and cash flow projections and a specially designed portfolio of individual financial assets designed to take you where you want to go.

Financial Planning | Investment Process

Financial Planning

As part of our Financial Planning process, our team of financial planning professionals will review your Net Worth Projections, Estate and Income Tax Analysis and provide detailed Recommendations regarding which direction they think will best help you reach your investment objectives.

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Net Worth Projections

These consist of a detailed listing of each component of net worth with assumed rate of returns projected out over several time periods (helpful for retirement planning and in determining ability to take on risk). Also included is cash flow analysis which takes into account current spending/savings/investing patterns using assumed rates of return.

Estate and Income Tax Analysis

High rates of tax in this country make tax planning an essential part of wealth management. Our planners evaluate your tax situation against the backdrop of current and proposed tax laws looking for opportunities to make the best financial decisions. Also, many of our clients fund charitable causes and we recommend a host of creative and sound charitable planning strategies that show clients how to optimally support causes dear to them in a fiscally smart way.

Recommendations

At LVM we do not practice law, prepare tax returns or sell insurance. However, your wealth design plan often will provide a detailed analysis of some or all of the following: Roth IRA conversion, insurance policy reviews, trust/will updates, charitable planning, next generation planning, estate preservation and gifting strategies. As your wealth manager, LVM will consult with your professional advisors, such as attorneys and CPAs, to insure proposed strategies are implemented optimally for you. As appropriate we will also conduct family meetings if requested to bring the next generation on-line with our clients’ life goals.

Our Team

At LVM Capital, each client’s personal financial team of planners, advisors and managers consists of both CFAs (Chartered Financial Analysts) and CERTIFIED FINANCIAL PLANNER™ practitioners. Our CFAs bring detailed knowledge of investment alternatives, diversification possibilities, and portfolio risk and return management, while the expertise of our CERTIFIED FINANCIAL PLANNER™ practitioners is in holistic planning for wealth accumulation, tax minimization, and retirement. By providing both CFAs and certified planning professionals, LVM Capital helps our clients envision the bigger picture involved with implementing a multi-generational financial plan and allows our clients to benefit from some of the best thought leaders across the entire investment management spectrum.

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<<Financial Planning | Investment Process>>

Investment Process

LVM approaches stock investing in a disciplined and consistent manner, performing quantitative and fundamental analyses on a universe of potential stocks and securities, taking into account the economic environment. After building and implementing a well-diversified and risk controlled portfolio, we maintain a sell discipline that aims to preserve gains and minimize losses through active monitoring and management.

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Quantitative Analysis

For a company’s stock to be considered, we look for high and sustainable return on equity and well-defined growth prospects, improving profitability and strong balance sheets. We also like to see a unique niche for the company, but ultimately we demand value, assessing intrinsic value relative to current market value.

Fundamental Analysis

Determining the underlying quality of a company’s stock also requires that we consider how a company functions as a conceptual, capitalistic construct. Here, our portfolio management team’s depth of knowledge becomes an invaluable asset in evaluating potential investments. In our fundamental analysis stage, we focus on understanding each company's economic model, how they interact with customers, suppliers, and distributors in its daily operations.

Portfolio Creation

Through bottom-up stock selection, we then begin constructing a diversified and risk-controlled portfolio consisting of large, mid-sized and smaller company stocks within a broad range of market sectors that are selling at a discount to intrinsic value. The resulting portfolio is designed to meet each client's unique objectives.

Sell Discipline

LVM considers itself a long-term investor, and we maintain a prudent sell discipline based on preserving gains and minimizing losses. We consider sale when one or more of the following circumstances occur: it is no longer undervalued; if fundamental milestones are missed; or if significant changes exist in the competitive environment.

Monitoring and Communication

Regular contact between clients and their LVM wealth managment team is essential. Over the course of a year, your wealth management team will meet with you for a comprehensive review of your wealth management plan. Topics such as changes in the markets, your financial situation, and tax law revisions will all be covered to make sure your wealth management plan is still optimal.

More often, we will meet with you to review the investment portfolio. As an LVM Captial client you will receive regular communications as we endeavor to maximize your understanding and comfort in working with us at all times.

Michigan | Florida | 800.488.2036

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