Process
Your wealth isn’t a lump of money in an account; it’s the result of decisions you have made, all of which were determined by your psychology.
For most people who come to us, the bigger challenge isn’t getting rich; it’s preserving and protecting you from losing your wealth. Our goal is to manage the psychological drivers of financial decisions, and help you avoid behavioral biases that will make you lose money in the stock market or by making emotional, unoptimal financial decisions.
Before you become a client, we will guide you through an intake process which will provide you with answers to three main questions:
- How can we manage your psychological responses so that you avoid losing money?
- What actions should you take to gain control of your financial future, and when should you take them?
- What will you get out of working with us, and is it worth it?
Answers to these questions are documented and delivered to you in an Asset Map. There is no cost for this part of our process, as we wish to create total clarity about how we can help you before you come onboard.
Pre-meeting questionnaire
You’ll fill out a three question survey that will provide us with answer that will allow us to gauge if what you are seeking lines up with what we provide. If not, we’ll gladly refer you to our network of trusted contacts.
Intro Call
We’ll go over the questionnaire responses and get clarity about your goals and financial life.
During this meeting, we seek to gain understanding of the 16 behavioral biases that you may be subject to, and how you think about your wealth. We also seek to gain an understanding of how you make financial decisions, what drives your thoughts about wealth, and what your emotional responses are to financial changes, including how you would respond to losing money in the stock market to any degree. Lastly, we want to learn about how you wish to be communicated with and what your preferences are regarding the use of technology in the wealth management process.
Creation of Asset Map
We’ll apply the knowledge gained from our meetings to create an Asset Map and send you a video for your review. Our analysis will tell you:
- What is the largest threat to your and your family’s wellbeing, currently?
- What actions should you take, to gain control of your financial future?
- What are the emotions and behaviors that must be managed to help you avoid losing money in the stock market?
Asset Map Review Session
We’ll explain what you need to do in order to gain control of your financial future. We’ll also discuss how your firm will help you achieve your goals, what the cost of the service will be, and what value you will get by working with us.
Most wealth management firms do little to nothing to manage their clients’ emotions, to curb downside risk to protect you from losing money, or to understand the psychological biases behind the decisions you make. At SYKON, this is our focus.
We are investors who believe in driving value by actively engaging
in the capital markets. We follow a data-driven, rules-based investment process that reflects our decades of experience in portfolio management, analysis, and execution. We believe in thinking progressively and taking a stand when the data demands, which our clients appreciate as a unique and fresh perspective.
Our Biologically Adaptive Portfolio models help manage behavior,
limit biases, and exploit inefficiencies, and we prioritize reliability, predictability, and consistency. Specifically, quantitative time series and cross-sectional asset analysis enable our portfolio process to make both strategic asset allocation and tactical asset allocation adjustments.
We utilize the scientific process and null hypothesis theory
to integrate core concepts of behavioral finance, portfolio management, and human physiology to understand how we react to the pain of loss and the joy of gains. This data series attempts to optimize portfolios for favorable forward-looking risk reward characteristics based on prevailing market conditions using a factor-based asset allocation.
By Integrating our unique Adaptive Volatility Analysis,
we can adjust the time frames in which we view the market and rebalance portfolios. This results in a more stable allocation during lower volatility periods and a more dynamic allocation during periods of higher volatility.
Our clients have come to expect and deserve decisions
that are based upon objective data analysis. When it comes to their portfolios, we believe that clients deserve better advice than canned generic responses about how “the market will come back.” Your assets are a tool to empower your life and decisions, not something that should keep you up a night.
Our regular market commentary and communication will articulate these decisions
and the data driving them, so that you understand everything that impacts our quantitative portfolio management process and your asset allocation. Ultimately, the use of our proprietary and unbiased process, our scaling methodology, and systematic rebalancing help manage downside risk as we pursue consistent, meaningful returns for our clients.
