I am creating general strategy tenets from a financial advisors point
of view for the creation of financial strategy;'s for individual
clients I want to ensure I'm covering all the bases - I've included
the list I have compiled so I just want further direction on other
tenets that may be included and where to look.

?	Cash is king: No matter what, we ensure our clients don?t run out of
money. With such heavy reliance on discretionary bonus?s and proceeds
from stock scheme?s it is vital to ensure we have reserved sufficient
cash to meet our client?s requirements.
?	Cover all identifiable risks: Only a fool accepts a risk that can
devastate lives that can easily be avoided.
?	Have real financial systems from day one: The cliché, ?It?s better
to build on a strong foundation,? applies. We put the foundation in
place early so that our clients are on a solid financial footing.
?	 Measure everything: We have real financial systems in place, we can
measure everything. We are obsessive about it. As our clients
financial strategies develop, we ensure we evolve and expand what we
measure to best reflect the current state of our client?s finances. J2
looks especially for metrics that will help tell you where your
finances are going, not just where it has come from. Financial systems
can and should capture more than just historical financial results.
?	Build an annual operating plan: J2 is disciplined about creating an
annual operating plan and budget every year for each of its clients.
This is our easiest benchmark to measure against - your own
expectations. If you don?t set them, you won?t know how you did.
?	If it sounds too good to be true, it probably is: While this is
generally true in life, it?s especially true concerning financial
structures in financial planning. J2?s experience will ensure we ask
the right questions, are wary, and know what we are getting our
clients into.
?	Fund strategies appropriately: One of the most common mistakes is
for clients to spend money today on things that are unimportant to
them without considering the impacts later on what is really important
to them.
?	Don?t take anything for granted: J2 Double-check?s everything. J2
has developed the right systems to ensure we get things right.
?	Combine and complement:     J2 uses financial planning and
investment approaches that complement arrangements offered by our
client?s employers.
?	Geography may be temporary: Many of J2?s clients are non-UK
nationals and the important factors are sometimes an ocean away.

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Clarification of Question by ace007-ga on 15 Jan 2005 11:08 PST

Thank you for your comment but I'm really after strategic tenets prior
to the investment strategy decisions - modern portfolio theory etc -
I've got that bit covered.

Ace007 --

Beyond "cash is king," you've missed the 2nd most-important aspect -- diversify.

Might I suggest a Google search strategy of:
"portfolio management" diversification

Best regards,

Omnivorous-GA

A second excellent search strategy that encapsulates much of the
change in financial thinking in the past 30 years is:
"modern portfolio theory"

Best regards,

Omnivorous-GA

I found this to be EXTEMELY helpful. I have received great market
advice and help from here. have a look and see what you think.
http://greatnews.t35.com

Hi ace: you have a great set of generalities. How about some examples
such as 100 shares of moon mining, 100 shares of seabiskets prefered
stock $10,000 on deposit in the Bank of England etc.  Neil

?	Cash is king:  ?Be Liquid is being Nimble?

 >> However, while a good saying it should reflect liquid currency.
Meaning that, if you investor was holding US currency they were
actually losing money. Example: Holding gold, euros, and yen in the
portfolio allows for a diversified liquid account not directly
affected by exchange rates.

?	Cover all identifiable risks: ?Principal Protection?

>> Identifying risks is great, but how about hedging against risk? I
had a FA identify risk in my portfolio and I asked him what are we
going to do about it. He said, ?Well, we are identifying the risks in
investing.? Most FAs have little understanding on how to HEDGE risk.
Being able to insure portfolio?s against ?Black Swan? events is
paramount to staying in the game. Better Hedged than Dead!



?	Have real financial systems from day one: ?Solid Financial Principals?

>> Not really following you on this? nor will most investors. I think
it would be simpler if you said ?Solid Financial Principals?.
Investing in a core portfolio that offers diversity, security, and low
volatility.


?	 Measure everything: ?Keeping it Simple and well defined?

>> I think more transparency and easy to read and understand
statements. Goals, expectations, and risks need to be made clear and
concise. Measuring is great, but what does it really mean. RiskMatrix
is a great product, but I can count on one hand how many people
understand what it means, how to use that information, and what it
represents as far as risk. If the professionals have a hard time of
it, imagine the investor. Keep it simple and clear.


?	Build an annual operating plan: ?Investment Plan?

>>>Measuring cash flow and creating a budget is the cornerstone of
creating an Investment Plan.

?	If it sounds too good to be true, it probably is: ?No Risk, No Reward?

>>>All Financial instruments involve risk, however with solid
guidance, understanding of reducing or limiting risk, and building a
solid Investment Plan we can create investment growth and principal
protection.

?	Fund strategies appropriately: ?Investment Plan?

>>>> I think this would be better off under Investment Plan. You
should be offering guidance on how and what to fund in the Investment
Plan.




?	Don?t take anything for granted: J2 Double-check?s everything.
?Whoa, we make mistakes so we double check everything!?

>>>Hey? this is an important thing to mention to clients, but not in
your marketing Tenets for your company. Put it in your documents, but
not here. This sends red flags up! Most clients expect you to know
what you are doing and are going to look at their account statement at
the end of the month for about an hour. The EXPECT you to make sure
it?s right and should not have to be told that you are double-checking
your work.


?	Combine and complement:     J2 uses financial planning and
Investment approaches that complement arrangements offered by our
client?s employers.

>>>Interesting??.but most people don?t know, care, or pay attention to
what their employers offer in their 401k or other products.


?	Geography may be temporary: ?Global Investments?

>>>We?re not in Kansas anymore! The world financial markets offer vast
opportunities and diversification. This not only opens up new growth
to our stable of investments choices, but reduces risks.




I think you have a good basis for building your chief tenants and
marketing points to your clients. Good luck?


-	LionFish42