What does the Vermillion Investment Planning process include?

Investment Services

What does the Vermillion Investment Planning process include?

What does the comprehensive Investment Planning process include?The Vermillion Six Step Investment Planning Process starts with an evaluation of your current holdings, and the setting of your long term goals. Our firm views investments as the fuel that propels you and your family toward and through retirement similar to how fuel within an engine of a boat propels the boat toward the target landing area. How comfortable the boat rides, and how safely it lands, depends on how fast it travels and how well the boat is driven. Similar factors will affect your investments as you set a path for you achieving your financial goals.

Step 1 – Investment Inventory: To evaluate your existing portfolio, we believe the process should start with a thorough inventory of all your current holdings. This inventory documents a starting point for each of your existing investment holdings, including registration, symbol, quantity, income, cost basis, annual investment expenses, historical return, historical volatility, current market value, and weighting within the overall portfolio.

Step 2 – Questionnaire: In most cases, the inventory is followed by the completion of an investment questionnaire which sparks discussion and helps to crystallize your long-term investment goals and priorities, allowing you the best use of your previous investments and experience to help you achieve your objectives. This comprehensive list of questions is designed to help you identify everything you hope your portfolio will accomplish. Discussions of various risk, personal experiences, tax implications, pros and cons of past decisions, fears and concerns you face, and lessons learned are all documented. This allows for a deeper dive into reviewing your existing investment holdings and all the decisions associated with such holdings; and gives us a clearer understanding of how they fit with the goals and concerns you’ve expressed.

Step 3 – Education: You will learn about various concepts of investing through informative discussions between you and your advisor, answering many questions about investing such as; “how taxes impact your portfolio”, “when to review an asset”, and “the difference between diversification and asset allocation policy”, just to name a few. Key factors to consider when designing a portfolio are presented and discussed. The purpose of these discussions is to increase your knowledge; thereby helping you to make better informed choices and to allow you to participate in the investment decision-making that will follow.

Step 4 – Investment Analysis compiled and presented: Your analysis includes an explanation of various investment factors, portfolio design assumptions, projections, optional investment vehicles, pitfalls to try to avoid, and potential solutions for achieving your goals. The review of your current investment holdings starts with the question… “If no changes are made to your portfolio, how close are you to achieving your goals?” Afterward, the discussion transitions to the possibilities of expanding, changing, and/or adding new investments. Then, whether or not to include new tools and techniques; and finally, give consideration to any possible changes in your portfolio – always evaluating if such changes are deemed beneficial to you.

Step 5 – Implementation of Possible Recommendations and the Creation of a Personalized Action Plan: When appropriate, recommendations and a unique action plan are provided for you to transition your existing holdings to a new portfolio mix or design that will include the changes discussed and agreed to in Step 4 – all to better position you for progression toward achieving your investment goals.

Step 6 – Ongoing Monitoring: Monitoring is key to your investment success. Keeping your eye on your portfolios performance is what builds confidence and comfort. Knowing that you and your Vermillion Financial Advisor are watching and responding to the results of your portfolio is what will allow you to achieve peace of mind. Your VFA Advisor will discuss a monitoring program, and an appropriate periodic review schedule to determine the frequency of appropriate adjustments to your portfolio’s investment holdings. This is what allows you and your portfolio to keep moving forward.


On-Going Monitoring and Periodic Review helps your investments better meet your goals, and as an additional benefit provides you with:

1. Reduced stress levels which allows you to start to enjoy life more.
2. Provides greater confidence in the investment holdings and path you chose.
3. Better control of your finances and more peace of mind, knowing that you’re on track toward the future you want for yourself and your family.
4. Reduce’s the emotional responses to market changes, and that will help you avoid costly mistakes.
5. More time for you to spend with those you love.