Color of Money Report
Client Focused, Personalized Approach, Fiduciary Driven
What Color Is Your Money?
Don’t put all your eggs in one basket. These often-quoted words of wisdom were never more relevant than when applied to your financial plan. We all get the message, but we have trouble recognizing what the basket is. Many people have most, or all, of their investments in a single investment account. They may believe that because they have a mix of mutual funds, or a mix of stocks and bonds within that account that they are safe. But the eggs are still all in the same basket!
Brokerage Specialists is a fiduciary financial advisor and investment manager. We don’t sell investment products, we provide you with the advice and services to ensure you retire well. This allows us to take a larger view of your baskets, instead of trying to get control of all your eggs. We use a Color of Money Risk Analysis to find your personal risk score. Based on that score we balance your assets according to where and how your eggs are kept and managed, instead of which products are owned inside. We divide these into Red, Yellow, and Green Money. These three colors of money represent three different baskets for your assets.
RED money is assets that are invested and are exposed to risk of loss, and also provide an opportunity for growth. An example would be a 401(k) account.
YELLOW money is assets, similar to Red money, that are subject to risk of loss, and also provide an opportunity for growth. But Yellow money is actively managed by a money manager which may reduce the long-term effects of losses or create additional opportunities for growth. An example would be a managed investment portfolio.
GREEN money are assets that are exposed to less risk of loss and may not have as much opportunity for growth. An example would be a CD at your local bank.
Once we know your color score, and which basket your eggs should be in, we compare your current assets to your color score. This allows us to give you a detailed picture of how closely your current asset division matches your preferred level of risk and return. We call this detailed and complimentary document a Color of Money Risk Analysis Report. The first step to obtaining this report is to take a short 11 question Color of Money Risk Assessment at the following link.
Color of Money asset types are not a replacement for asset diversification. Investors should follow proper asset diversification advice within any account.