In the financial world, people often talk about the long term: “Long term, we think such and such.” Or “In the long run, this is likely to happen.” But no one really defines what period of time long term refers to. Are they talking about five years? 10 years? More than a year?
Here at LNWM, the work we do for you is focused on making the most of your assets over time to support the life you want. How we define long term is specific and depends on the purpose — investing, financial planning, trusts and estates. Here’s a closer look:
Investment management. Our global economic forecasts, which inform our strategic asset allocation and other key investment decisions, are based on the next 10 years. We also take advantage of near-term opportunities (within the next two years) to take tactical positions often geared to reduce portfolio risk or to take advantage of pricing anomalies. The end result: an investment portfolio geared to weather a full market cycle (both up and down), while taking advantage of near-term opportunities.
Tax and financial planning. We create comprehensive financial plans based on your needs and goals. Plans have an annual component but are produced using a 40 year time horizon. For each client, we answer this key question, among many others: what level of spending is sustainable for the next 40 years given your current assets and projected investment returns? These long-term forecasts are updated annually to reflect changes in your lifestyle and in the markets. The end result: a realistic, detailed financial plan that provides a foundation for whatever you want to accomplish in life.
Trusts and Estates. Here, our long-term timeframe is up to a century or more. In Washington State, for example, trusts can be operative for up to 150 years. Our goal here is to maximize control, tax-efficiency, privacy and expediency in the transfer of multi-generational wealth. The end result: an enduring legacy.