RLS Description of Services

Client Consulting and Advising
 
These services include discussion and providing advice on investment related topics, strategies for choosing retirement plan investment options, advice on retirement plan distribution/rollover strategies, calculation of retirement plan/investment payouts, review of and consulting on company investment related plans and options and answering general and specific client investment, investment strategy and financial market related questions.
 
Investment Analysis and research
 
Refers to the analysis of existing or proposed client investments or a retirement plan investment portfolio with details provided verbally or in a written report. This will include a discussion of forward looking risk vs. reward, and other investment options that may provide a potentially better return or similar return with potentially reduced risk. Research may include historical performance of specific investments, financial markets and/or other assets.

Portfolio Design
 
These services include the creation and implementation of an investment portfolio designed for the specific investment objectives of the client based on their investment experience, risk profile, annual income and tax bracket, time frame, asset protection and/or estate planning needs and other existing investments. Additional considerations may include income needs planning at a certain age, gifting/charitable planning, liquidity needs and savings for Education and/or College and special needs.

ACTIVE Investment Management
 
Is the strategic and time-sensitive movement of money from one investment into another investment when advantageous, either to potentially maximize profits, prevent investment losses and/or to buy into an investment when the risk vs. reward profile is greatly skewed toward reward and potential risk is very low. Active Management Services look to take advantage of market “dislocations” as a strategic way to enter investment positions with reduced risk and to exit investment positions during periods of market “euphoria”. Special effort is made to continually develop new strategies that potentially reduce market risk while seeking to protect profits and investment capital.
 
Active Investment Strategies use technical, fundamental and cyclical analysis and objective statistical indicators and charting to help remove “emotional” factors and “noise” from the investment process, instead focusing on the behavior of the specific investment and its interaction with the financial markets. These strategies do not have a time frame, rather specific investments are made based on the fact that there is a potentially highly favorable risk vs. reward profile and may be held for days, weeks, months or years, or until the profile changes.
 
All actively managed accounts are Discretionary in nature, meaning that RLS, after taking into account the specific client investment objectives, has complete freedom to determine the specific investments to be used and the timing, price and details of the buying and selling in the account. Changes are made to the portfolio on an ongoing “as-needed” basis when new and potentially favorable investment opportunities arise and to protect against portfolio losses.

RLS can provide Active Management Services for Variable Annuities, Mutual Funds and/or stocks/bonds/options and other assets in brokerage accounts.

Unlike most client investment accounts maintained by traditional investment salespeople, registered representatives and Investment Advisors, ALL RLS actively managed accounts utilize safeguards for potentially reducing and limiting risk and to protect against catastrophic losses.

In addition, RLS uses investment products and brokerage accounts that are designed to be extremely flexible, selected so that that they will incur very low or no commissions to enter/exit investments and very low or no account fees/costs. Unlike most traditional investment and brokerage accounts, transaction costs in RLS accounts are extremely small when compared to the value of the account.

PASSIVE Investment Management

Is the management of an investment account with occasional investment changes recommended to the client by RLS. By definition these are NON-Discretionary accounts, where the client is responsible for making all investment decisions. Due to the nature of the volatility of the financial markets and how fast specific investments can and do change in value, over the course of a typical bull/bear market cycle (generally 4-6 years), it is expected that an Actively Managed account will outperform a Passively Managed account due to the immediate ability of RLS to make investment changes to the Actively Managed account without the need to contact the client and receive approval for each transaction.

Model Portfolios

RLS Model Portfolios are designed for the client that wants investment diversification with a comprehensive strategy without the need for holding investments that demand constant attention. Changes to the model portfolios are expected to be made several times per year on an “as-needed” basis. Currently there are model portfolios for mutual funds and variable annuities and for a general brokerage account. The goal of the model portfolio is, over the course of a typical “bull/bear” market cycle, to substantially outperform the S & P 500 (a.k.a “The Market”) while taking less investment risk. It is anticipated that the percentage of the portfolio invested will generally vary from 30% to 80% depending on market conditions and where we are in the “bull/bear” market cycle.

The model portfolios were started on 12/31/08 and their performance will be updated from time-to-time and posted on this website.



51 Scudder Road , Newtown, CT 06470 Phone: (203) 270-9180   Fax: (203) 270-9185   Email: rshohet@rlsfinancialgroup.com
Investment Advisory Services offered through RLS Financial Group, Inc., a Registered Investment Advisor, 203-270-9180.
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