Message From the President: Fall 2024

As we approach a period of uncertainty and change, driven by the upcoming presidential election, I feel it’s important to highlight the contrasting strength of our structured investment processes. The coming months promise to be dynamic, with factors that could impact the financial landscape. These changes bring both challenges and opportunities, and navigating them requires a steady hand and a clear vision.

In times like these, staying anchored in a disciplined approach is essential. At Affiance Financial, our commitment to you remains steadfast: we are not swayed by the noise of market sentiment, whether it be bullish optimism or bearish caution. We understand that emotional reactions to market fluctuations can lead to impulsive decisions, which often undermine long-term financial goals.

Instead, our process-driven approach is the cornerstone of our investment strategies. We focus on what truly matters—preserving and growing your wealth through thoughtful, deliberate decision-making. This means that any action we take is rooted in careful analysis and a deep understanding of your unique financial objectives. We don’t react to short-term market trends or sensational headlines; we plan for the long-term, aligning our strategies with your future aspirations.

Our structured processes are designed to provide stability and clarity, even in uncertain times. Whether it’s monitoring your portfolio’s alignment with target allocations, strategically managing risk during market dislocations, or optimizing for tax efficiency, every aspect of our approach is geared towards ensuring that your investments are managed with precision and care.

Here’s a closer look at the key pillars of our investment planning approach:

• Weekly Portfolio Drift Monitoring: Every week, we review your portfolio to detect any deviation from your target allocation. Should your portfolio drift by more than 5%, we will conduct further analysis and will determine whether prompt action to rebalance it is necessary to realign with your strategic objectives.
   
• Market Dislocation Planning: In times of significant market movements, we carefully assess the environment and its potential impact on your portfolio. This allows us to make calculated adjustments, potentially capitalizing on opportunities to buy low and sell high, while ensuring your asset allocation remains on course.
   
• Regular Portfolio Review: Our comprehensive portfolio reviews are designed to uncover opportunities for enhancement. We analyze various factors including portfolio construction, performance attribution, fund selection, and capital market assumptions, to ensure that your portfolio is continually optimized.
   
• Systematic Tax Management: We diligently work to enhance your after-tax returns through tax-efficient portfolio management.  This includes executing tax gain or loss harvesting and implementing strategies that are intended to minimize your tax burden, allowing you to keep more of what you earn.
   
• Strategic Cash Management: In an environment of higher interest rates, effective cash management is more critical than ever. We ensure that your cash balances are not only securely managed, but also optimally invested and distributed to meet your specific needs.

By adhering to these well-defined processes, we navigate market fluctuations with confidence and precision, keeping your financial future at the forefront of our decisions.

In a world where market sentiment can change overnight, having a consistent, process-oriented strategy is more crucial than ever. It allows us to stay focused on your financial goals, guiding your investments with clarity, no matter what the markets may bring.

Thank you for the continued trust you place in Affiance Financial.

Respectfully, 
Eric Unger, Partner, President, Chief Compliance Officer

Different types of investments involve varying degrees of risk. Past performance and detailed processes do not guarantee future results. Please remember to contact Affiance Financial if there are any changes in your personal/financial situation or investment objectives.

Affiance Financial is not engaged in the practice of law or accounting. Asset allocation, rebalancing, and diversification will not necessarily improve an investor’s returns and cannot eliminate the risk of investment losses.