A Word From The Advisor
Control Your Future

The essence of building personal wealth is determining what your investment goals are, focusing on the best way to achieve them and identifying the resources that will be needed along the way. There are many factors that enter into these decisions, and as intangible and difficult to define as they may be, making these decisions is a mandatory step in attaining your investment goals. At Oakwood Capital Management LLC, we have the means to provide reasonable answers to concerns about your investment needs in a risk-sensitive, disciplined manner.

A useful tool to map your current financial situation is to analyze your assets and liabilities. The preparation of a personal balance sheet will clearly outline your net assets, defined as assets minus liabilities. As in a corporate balance sheet, the personal balance sheet is a snapshot in time, such as a calendar year end, providing a picture of your financial health. Assets that you would list might include your annual salary, expected Social Security benefits, your home and real estate investment property, along with your investment portfolio. Liabilities would include your basic living expenses, any education or health care costs, and other discretionary living expenses.

Assets and liabilities change along with increases in age, a change in employment status, increased health care expenses, and other factors that may not be under your control. The most critical asset under your control is your investment portfolio and, subsequently, its impact on your net assets. As a client at Oakwood, you have already taken the first step in taking control of your portfolio by having your investment assets professionally managed.

When you first became a client, the assets that we initially managed for you may have comprised most of your investment portfolio. At that time, our recommendation of a particular strategy would have fit your investment time horizon and personal circumstances. However, since that time, your liabilities may have broadened or narrowed, your investment horizon may have lengthened or shortened, and your investment assets may have increased, and you may have added money to your Oakwood portfolio. All of these variables will have an effect on your net assets.

Oakwood Capital Management takes very seriously the responsibility of managing the investment portion of your assets. We understand that for many of you, your Oakwood portfolio represents the majority of your liquid assets. As time passes by, this portfolio will become a larger and larger percentage of your total assets. We employ sophisticated tools to continuously analyze your investments, which allow us to point out areas which leave you exposed to unnecessary risks. Our analysis shows how a potential reallocation of a portion of your current Oakwood portfolio to another Oakwood strategy might affect your income stream and, in turn, your ability to meet your liabilities, or how a change from one strategy to another might change the volatility or return potential. Please tell us if you have a change in your assets, or your liabilities outside of Oakwood’s management. We can help you determine the best course of action in light of these changes. We consider this type of ongoing analysis an essential part of the process in a successful relationship that allows us to achieve the common goal of building your personal wealth and your level of income.

In the next issue of the Oakwood Outlook, we will take a closer look at the full array of Oakwood strategies and identify how they might fit into your existing investment portfolio. Until then, please feel free to contact us to talk about your investment portfolio.