What Financial Services Does NEST Offer?

At NEST Financial, we provide comprehensive financial services, including planning and investment management. Not too different from what you’d find at other firms… on the surface. 

The difference that NEST offers is in the details. We are a boutique financial firm, meaning we focus on quality rather than quantity. We elect to work with fewer clients, which means we can give the kind of bespoke, personalized attention to our clients that they deserve. 

Our passion is helping Austin and Hill Country-based entrepreneurs, individuals, families, and businesses manage and grow their assets in the service of their life and financial goals. 

Simple enough.

Except… How do we accomplish this? What exactly do each of our services entail? How exactly will your investments be managed? What are the different components of a plan? What does it require of you? 

How is NEST different from the other guys?

Let’s lay it all out on the table.

 

Financial Planning Services

Our financial planning services are, in a word, comprehensive. 

It would be helpful to think of it as more of a process, rather than a plan. And this process takes time, honesty, and vision. 

It all starts with education. As business owners with over 30 years of experience, we have a wealth of knowledge to offer. Education is the foundation of all we do at NEST, because if we’re going to work together to help you reach your financial goals, it truly is a partnership. 

Both parties need to be in possession of the best information in order to create the roadmap to get from where you are, to where you want to be. Financial education is the thread that runs through all the work we do together. We want you to not just be the recipient of our suggestions, but also understand why we’re making them.

That said, education goes both ways. That’s why in the first meeting we get to know each other, and make sure that we’re a good fit beyond what it says on paper. This gives us a chance to understand you, your current situation, and your goals. It’s also a great time for you to ask any questions you may have about us, our strategies, or our philosophy. 

We really listen to our clients, taking stock of what you want to achieve. Once we have a good idea of your goals, we’ll start to crunch the numbers and devise a holistic strategy. 

 

Some of What We Cover

• Cash flow analysis – We look at where your money is going and help you build a budget to optimize the flow. Sometimes people aren’t sure where their money is going, and that’s okay. We’re here to help.
• Investment portfolio analysis – We review your investments to ensure they are aligned with your objectives.
• Retirement planning – We dig into how you envision your retirement, and what it will take to get you there.
• Estate planning – We work through the decisions of what happens to your assets, dependents, and business if something happens to you. 
• Insurance coverage analysis – We examine your coverage and make recommendations that will provide for you and your family in various situations.
• Investment tax planning – We look at your tax strategy to ensure you are planning in a way that maximizes savings.
• Referrals to CPAs and attorneys – We’re not CPAs or attorneys, but we know some damn good ones.

Our financial planning service is fee-based, starting at $5,000. It’s an intensive, personalized process that takes into account your financial state, assets, and goals. This includes minor adjustments in the year after your plan is created. Any major adjustments incur a $250/hour consulting fee.

 

Bespoke Financial Planning

Don’t be deceived — this isn’t a simple input-output process. We don’t feed your information into a machine which then spits out a plan for you. You are not just another number. 

Our process is more of a dance. We compose, consult with you, revise, refine, repeat. This process is time-intensive, requiring several meetings and up to five weeks. 

That’s what bespoke means to us. Your planning process is tailored to your unique needs and goals. It’s not just pulled off the rack.

This is ultimately what’s different about NEST. Our process is simplified (for you), but extremely personalized and granular. We get into the nitty gritty of your financial life, leaving no stone unturned. We won’t overlook a possible avenue for getting you to your goals. 

Other firms are more formulaic. And that works for them, because they have a lot of clients to care for. And we supposed some financial plan is better than no financial plan. 

But we want the most optimized strategy for our clients. We ensure we can offer that level of service by minimizing the quantity of clients we take.

 

Investment Management Services

In a nutshell, we assess your risk tolerance and the goals you’ve established in the financial planning process, and then actively manage your investment portfolio using Sean’s data-driven, macro-aware process.

But who wants to stay inside a nutshell?

The way we do things at NEST is different from other firms. Most firms gauge your risk tolerance and financial goals, then choose the most appropriate of their investment models to stick you in. And there you stay playing the long game, regardless of what the economy is doing, trusting that the trend will generally tick upward throughout the years. 

But when investment managers don’t consider the global macroeconomic situation, they’re leaving out some of the most important information. Without that data, and the expertise to interpret it, they are selling you a parka in June with the assurance that in six months winter will be around again. In the meantime, you’re looking at the smart guy in shorts wondering why oh why you didn’t plan for the season.

 

The Quads

The economy generally falls into one of four quadrants, Quad 1, Quad 2, Quad 3, or Quad 4. Quads are all about the rate of change of economic growth and inflation. Quad 1, the “Goldilocks” Quad, is a time of accelerating growth and decelerating inflation. In Quad 2, growth and inflation both accelerate. Quad 3 is when growth slows while inflation is still accelerating. And in Quad 4, both growth and inflation are slowing.

Like each of the seasons, none of the Quads are “bad,” per se. They’re just different and require different strategies.

Within each Quad, there are asset classes, such as equities, commodities, currencies or bonds, that perform better, and asset classes that perform worse. And for each Quad, the best performers are different.

For example, in Quad 1, equities generally perform better. But in Quad 4, you’d generally avoid them and go for gold. 

Now, if you’re in a fixed model based on Modern Portfolio Theory, the assets you’re invested in won’t be adjusted according to how the economy is performing. They’re adjusted to keep your investments in whatever ratio the model dictates. Meaning, you could still be at 80% equities in a Quad 4 environment.

How about an analogy? 

Let’s say you’re planning an expedition to summit Everest. You’ve outfitted yourself with the best gear for the extreme conditions of sub zero temperatures and the thin air of high altitude. For the trip, you couldn’t be better equipped. 

But suddenly, your plans change. Now, you’ll be in a trans-Saharan caravan. Is that top-of-the-line gear still what you want? Of course not! You wouldn’t make it a week.

It’s not the fault of the environment. The problem is with the preparations.

Similarly, there is no such thing as a bad Quad. There are only bad strategies and expectations.

 

Our Portfolios

At NEST, our clients are put into different portfolios depending on their risk tolerance and financial goals. Just like at most investment management firms. 

Our portfolios include:

• SUSTAIN – 6% return goal – conservative portfolio – low risk
• BOOST – 7% return goal – middle of the road portfolio – low-medium risk
• AUGMENT – 8% return goal – middle of the road portfolio – medium risk
• ESCALATE – 10% return goal – aggressive growth portfolio – high risk
• OPTIMIZE – 20% return goal – Alpha growth portfolio – highest risk

But that’s where the similarity ends. 

Sean spends hours each day taking in and analyzing worldwide economic data, and he uses this data to actively manage each of NEST’s portfolios. There are no ratios to maintain. We don’t involve opinions or hunches. There are only strategic responsive adjustments based on what the economy is doing at a macro level.

This means that whatever Quad we’re in, your portfolio will reflect the best strategy for growing your assets.

Customized. Data-driven. Responsive. Strategic. Optimized. 

That’s the NEST difference. 

 

Which service is right for me? 

At NEST, we have clients who come to us for financial planning only. Additionally, we have clients whose portfolios we manage without having done their financial planning. But the majority of NEST clients choose to do both with us — and with good reason.

Financial planning is where you set your intention. Investment management executes it. 

When you team up with NEST for both financial services, you ensure that both your tailored financial plan and your investment strategy are aligned in service of your unique situation and goals. 

First, we help you uncover and plan for your goals, then we help you realize them. 

 

If it’s time for you to hire a financial advisor, why not schedule a no-obligation call with us? We serve entrepreneurs, individuals, families, and businesses in Austin, the Hill Country, and beyond. And we’re ready to help you accomplish your financial goals. 

 

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DISCLAIMER: We are legally obligated to remind you that the information and opinions shared in this article are for educational purposes only and are not financial planning or investment advice. For guidance about your unique goals, drop us a line at info@nestfinancial.net.