WEALTH MANAGEMENT

When you’re ready to begin exploring the possibility of becoming a client of Valentine Ventures, you can either call the office to set up a brief introductory call or meeting, or reach out using our web form.

Operating as a team for all clients, we work deliberately with you to learn the nuances of your financial condition, identifying areas of strength as well as deficiency.   Crafted by our Certified Financial Planner, your Financial Plan provides guidance on all aspects of the affluent investors life: Retirement Planning, Cash Flow management, Investments, Taxation, Insurance, Estate Planning, Education Savings and Business Transition.  To learn more about our Financial Planning, click here.

The Financial Plan also determines the optimal Asset Allocation for your investment accounts.  We present your target Asset Allocation in an Investment Policy Statement, which sets the parameters for your investment portfolio, and investing only begins after your approval of the Investment Policy Statement.

Our proprietary investment portfolio strategy utilizes liquid, low-cost ETFs to give you broad diversification across multiple asset classes; and a broad portfolio of high-quality individual bonds, laddered by maturity, provides capital preservation and interest rate protection.  To learn more about our Investment Management, click here.

There is a $750,000* minimum account size requirement to become a Wealth Management client. (How is that calculated?)

All services provided to Wealth Management clients—planning and investing—are covered by the account’s asset-based, investment management fee.  Additional information about how the relationship is structured can be found here.

If you have more questions, refer our Frequently Asked Questions or contact us.

To take the first steps towards becoming a Wealth Management client, contact us here.

Key Aspects to the Relationship

Our Wealth Management clients sign an Investment Management Agreement with our firm. Essentially it affords Valentine Ventures a Limited Power of Attorney (LPOA) to trade the investment accounts of the client (removable at any time) in exchange for a fee, for as long as it suits both parties. Greater detail may be reviewed via a copy of the Agreement.

All accounts are held at an independent brokerage firm, Charles Schwab & Co, Inc., in its Institutional division. There they are assigned to a Valentine Ventures Master Account (via the LPOA). This allows for the full benefits of Schwab’s custodial relationship (online and phone access to accounts, monthly statements, trade confirmations, etc.) as well as their low transaction costs. Valentine Ventures does not hold the assets, nor can it release the funds to itself.

Valentine Ventures prides itself on the standard of communication it sets.  Clients are provided a quarterly Review, which includes a written letter covering events and a report of  holdings and performance (compared to benchmarks, over various periods).  Current and past quarterly reviews and client performance reports are stored in an online secure client portal.

For the first $1MM in assets under management, VVLLC is compensated at an annual fee of 1.25% applied to assets under management, billed quarterly against quarter-ending asset values (times 1/4th of the annual fee). For the amount above $1MM, the fee is 1.0%. A lower fee may be negotiated for accounts over $2.5MM.

Risk-Based Investment Management

Valentine Ventures lives by one simple rule:  Don’t take on more risk than you need to.  The complexities of financial markets, as well as human emotions, can drive investors to misjudge and misappropriate their investment portfolios.

Risk Management

We begin by determining a client’s ideal asset allocation–how capital is allocated across the major asset classes (see examples below). Our modeling software analyzes your optimal portfolio allocation while assuming the least amount of risk necessary to achieve your objectives, given the constraints specific to your personal situation.

Within the investment portfolio, we endeavor to reduce risk through broad allocations to low-correlating investment classes. We invest across at least eight different asset classes and rebalance periodically, in an effort to smooth the overall return profile and reduce the effects of negative performance of any one class. Our proprietary portfolio structure includes the following asset classes:

  • U.S. Stocks
  • Foreign Stocks
  • U.S. Bonds
  • Foreign Bonds
  • Real Estate
  • Commodities
  • Volatility
  • Other Alternative Classes

Portfolio Construction

Valentine Ventures embraces the use of Exchange Traded Funds (ETFs) in client portfolios.  ETFs are now recognized as the ideal low-cost, diversified, and liquid way to access global asset markets of all kinds.

For asset protection and income production, Valentine Ventures structures a broad bond portfolio based on high-quality individual bonds and similar instruments.  The portfolio limits risk at several levels. Bonds are “laddered” by maturity to reduce “interest rate risk,” inflation-protection bonds are used to hedge against “inflation risk,” and only top-rated bonds are used to reduce “credit risk.” (Smaller accounts will use bond ETFs in place of individual bonds due to the constraints of constructing a ladder with less funds.)

The investment portfolio’s overall sensitivity to changes in the market, or Beta, is controlled so as to reduce exposure to risky assets once a protracted decline has been identified, as measured by proprietary technical analysis.

Comprehensive Financial Counsel

Who needs a Financial Plan? Everyone.

Financial Plans create a tangible path towards financial independence, craft an optimal Asset Allocation, and illuminate opportunities within the maze of personal finance. Our offering includes the construction of a Financial Plan and ongoing personal and business financial advice. Plans are included in the Wealth Management relationship, covered by the annual fee.

Construction of a Financial Plan

Clients work with our financial professionals to construct a Plan that addresses all of their financial and personal considerations, resulting in guidance in the areas of: Retirement Planning, Cash Flow management, Investments, Taxation, Insurance, Estate Planning, Education Savings and Business Transition. From the Plan:

  • A forecast of the viability of financial independence is derived using a Monte Carlo simulator.
  • An asset allocation recommendation is suggested–specifically that which subjects the client to the least amount of risk necessary to achieve their goals.
  • Other recommendations may be made in the areas mentioned above.

Plans are revisited annually, or more frequently based on changes, as necessary.

Click to see a Sample Financial Plan.

Creation of an Investment Policy Statement (IPS)

The IPS is a mutually agreed upon document articulating the account’s Objectives, Constraints, Asset Allocation and how we will modify and evaluate the progress of the account. It is based on the client’s specific situation, and the recommendations from the Plan.

Click to see a Sample IPS.

It is the sum of the accounts that will be under our care. For example, two accounts of $375,000 within one household meet the standard. Excluded from the calculation are accounts that we cannot manage using our investments, such as College 529 plans and most 401Ks (some “self directed” 401Ks that avail the participant of the assignment to an investment adviser will count toward the minimum as we’ll be managing it like all other accounts). If a client has $750,000 among “manageable” accounts, Valentine Ventures will offer its advice on the best allocation among choices for all accounts it does not manage (like 529s and 401Ks). Once the threshold is met, we will generally invite in immediate family members who may not, on their own, meet the minimum.

No. As long as the combined values of all accounts under direct management equal $750,000 or more by household (see prior point above), the minimum requirement to form a relationship is met—there is no requirement to release all investment funds to Valentine Ventures.

No. Occasionally, long-held securities will have material unrealized taxable gains embedded in them. We balance the liquidation of these issues with the risks associated with holding them, and in consideration of the tax impact. Additionally, if a client holds a “sacred cow” (dearly held issue) there is no requirement to part with it. At times it may even be desirable to split an account into two, to allow us to manage a portion while the client manages the other, if that’s of interest to them.

Contractually, either party, the client or the firm, can terminate by providing a written notice to the other, 30-days in advance. However, Valentine Ventures typically waives the 30-day advance notice period if a client requests a termination. Aside from a final billing (based on a prorated amount of accrued management fees) there are no other charges or restrictions on the funds being released from the firm’s control.

Valentine Ventures’ sole compensation are the fees it charges, as described elsewhere on this site. In addition, the client pays trade commission on some, but not all, of the investments in their portfolio (typically $4.95 per equity trade and reasonable amounts on bond trades). The firm will often use Exchange Traded Funds (ETFs), each of which reduce their value by an Operating Expense Ratio (OER)–however the OER on ETFs is famously low compared to mutual funds.

Anyone that answers this question with a number/percentage, or a range of numbers/percentages, is either a fool or a charlatan or both. Valentine Ventures devotes its entire energy to maximizing returns within the risk constraints unique to each of its clients. The overall investment environment during the term of the relationship will determine the vast majority of the return, and that cannot be predicted nor avoided. The foremost goal is to establish a reasonable financial plan, and then execute it with the most appropriate investment mix.

For starters, we don’t have access to your money—by design. Your accounts are held by an independent custodian and brokerage firm (Charles Schwab & Co., Inc). Our firm is afforded, by you, a Limited Power of Attorney that allows us to trade the account, receive information about the account, move money to you (for you), and bill the account for management fees. We cannot distribute your funds to our firm.Ultimately, because of the importance we assign to our role as your fiduciary, we abide by a Code of Ethics, as mandated by the Advisors Act of 1940, and hold ourselves to the highest level of integrity and compliance of all laws and regulations.

Yes and no. Before a portfolio is constructed, the client is fully aware of what the construction of the portfolio will entail, and they will have approved of the Asset Allocation targets via the Investment Policy Statement. However, as investments are bought and sold, clients are not consulted as to their opinion of the desirability of the transaction. That type of collaborative relationship exists within a retail brokerage arrangement, but not a discretionary investment management relationship.

All investments, and their trade confirmations, are available for client observation shortly after transactions occur (clients have full viewing access to their account online 24 hours a day via the Charles Schwab website.) Additionally, the performance of all investments, individually and collectively, is communicated to clients at quarter-end. The firm goes to great lengths to communicate its ongoing investment strategy throughout the year.

At the current time, a Contingency Plan exists in the event that Mr. Valentine is unable to manage the firm that allows for an orderly shut down of the company. In that event, clients would be notified and assisted in the transition to a new firm of their choosing, if needed. Eventually, the firm will have the infrastructure, resources, procedures and processes in place necessary to ensure its survivability without the role of any one member of the firm, including its founder.

No, Valentine Ventures has not been accused of any violation of the law or its fiduciary duty to clients and is not aware of any such accusations pending. The members of the firm abide by a Code of Ethics, as mandated by the Advisors Act of 1940, and the firm holds itself to the highest level of integrity and compliance with all laws and regulations. As a Registered Investment Adviser, the company is held to the “fiduciary standard” obliging it to act solely in the client’s interest.

While we’d like to say that we’re right for everyone, we’re not. We are ideally suited for individuals that would like to deliberately plan for financial independence (or the maintenance of said independence if it’s already been achieved), and who understand their own limitations in managing the assets that assist them in that regard. Our clients trust the financial planning process and its output, and are comfortable delegating the authority for investing because they lack the time, interest, expertise, or emotional restraint (or some combination of those qualities) to manage their own investments.

Valentine Ventures Vault Login

  • Valentine Ventures’ Quarterly Reviews, Performance, and Invoices
  • Investment Management Agreements, Investment Policy Statement, and Financial Plan
  • Our firm’s regulatory filings and related documents

Charles Schwab Login

  • Real-time information for account balances, positions, and transactions
  • Charles Schwab monthly custodian statements
  • Year-end tax reports
Wealth Management

When you’re ready to begin exploring the possibility of becoming a client of Valentine Ventures, you can either call the office to set up a brief introductory call or meeting, or reach out using our web form.

Operating as a team for all clients, we work deliberately with you to learn the nuances of your financial condition, identifying areas of strength as well as deficiency.   Crafted by our Certified Financial Planner, your Financial Plan provides guidance on all aspects of the affluent investors life: Retirement Planning, Cash Flow management, Investments, Taxation, Insurance, Estate Planning, Education Savings and Business Transition.  To learn more about our Financial Planning, click here.

The Financial Plan also determines the optimal Asset Allocation for your investment accounts.  We present your target Asset Allocation in an Investment Policy Statement, which sets the parameters for your investment portfolio, and investing only begins after your approval of the Investment Policy Statement.

Our proprietary investment portfolio strategy utilizes liquid, low-cost ETFs to give you broad diversification across multiple asset classes; and a broad portfolio of high-quality individual bonds, laddered by maturity, provides capital preservation and interest rate protection.  To learn more about our Investment Management, click here.

There is a $750,000* minimum account size requirement to become a Wealth Management client. (How is that calculated?)

All services provided to Wealth Management clients—planning and investing—are covered by the account’s asset-based, investment management fee.  Additional information about how the relationship is structured can be found here.

If you have more questions, refer our Frequently Asked Questions or contact us.

To take the first steps towards becoming a Wealth Management client, contact us here.

Key Aspects to the Relationship

Our Wealth Management clients sign an Investment Management Agreement with our firm. Essentially it affords Valentine Ventures a Limited Power of Attorney (LPOA) to trade the investment accounts of the client (removable at any time) in exchange for a fee, for as long as it suits both parties. Greater detail may be reviewed via a copy of the Agreement.

All accounts are held at an independent brokerage firm, Charles Schwab & Co, Inc., in its Institutional division. There they are assigned to a Valentine Ventures Master Account (via the LPOA). This allows for the full benefits of Schwab’s custodial relationship (online and phone access to accounts, monthly statements, trade confirmations, etc.) as well as their low transaction costs. Valentine Ventures does not hold the assets, nor can it release the funds to itself.

Valentine Ventures prides itself on the standard of communication it sets.  Clients are provided a quarterly Review, which includes a written letter covering events and a report of  holdings and performance (compared to benchmarks, over various periods).  Current and past quarterly reviews and client performance reports are stored in an online secure client portal.

For the first $1MM in assets under management, VVLLC is compensated at an annual fee of 1.25% applied to assets under management, billed quarterly against quarter-ending asset values (times 1/4th of the annual fee). For the amount above $1MM, the fee is 1.0%. A lower fee may be negotiated for accounts over $2.5MM.

Investment Management

Risk-Based Investment Management

Valentine Ventures lives by one simple rule:  Don’t take on more risk than you need to.  The complexities of financial markets, as well as human emotions, can drive investors to misjudge and misappropriate their investment portfolios.

Risk Management

We begin by determining a client’s ideal asset allocation–how capital is allocated across the major asset classes (see examples below). Our modeling software analyzes your optimal portfolio allocation while assuming the least amount of risk necessary to achieve your objectives, given the constraints specific to your personal situation.

Within the investment portfolio, we endeavor to reduce risk through broad allocations to low-correlating investment classes. We invest across at least eight different asset classes and rebalance periodically, in an effort to smooth the overall return profile and reduce the effects of negative performance of any one class. Our proprietary portfolio structure includes the following asset classes:

  • U.S. Stocks
  • Foreign Stocks
  • U.S. Bonds
  • Foreign Bonds
  • Real Estate
  • Commodities
  • Volatility
  • Other Alternative Classes

Portfolio Construction

Valentine Ventures embraces the use of Exchange Traded Funds (ETFs) in client portfolios.  ETFs are now recognized as the ideal low-cost, diversified, and liquid way to access global asset markets of all kinds.

For asset protection and income production, Valentine Ventures structures a broad bond portfolio based on high-quality individual bonds and similar instruments.  The portfolio limits risk at several levels. Bonds are “laddered” by maturity to reduce “interest rate risk,” inflation-protection bonds are used to hedge against “inflation risk,” and only top-rated bonds are used to reduce “credit risk.” (Smaller accounts will use bond ETFs in place of individual bonds due to the constraints of constructing a ladder with less funds.)

The investment portfolio’s overall sensitivity to changes in the market, or Beta, is controlled so as to reduce exposure to risky assets once a protracted decline has been identified, as measured by proprietary technical analysis.

Financial Planning

Comprehensive Financial Counsel

Who needs a Financial Plan? Everyone.

Financial Plans create a tangible path towards financial independence, craft an optimal Asset Allocation, and illuminate opportunities within the maze of personal finance. Our offering includes the construction of a Financial Plan and ongoing personal and business financial advice. Plans are included in the Wealth Management relationship, covered by the annual fee.

Construction of a Financial Plan

Clients work with our financial professionals to construct a Plan that addresses all of their financial and personal considerations, resulting in guidance in the areas of: Retirement Planning, Cash Flow management, Investments, Taxation, Insurance, Estate Planning, Education Savings and Business Transition. From the Plan:

  • A forecast of the viability of financial independence is derived using a Monte Carlo simulator.
  • An asset allocation recommendation is suggested–specifically that which subjects the client to the least amount of risk necessary to achieve their goals.
  • Other recommendations may be made in the areas mentioned above.

Plans are revisited annually, or more frequently based on changes, as necessary.

Click to see a Sample Financial Plan.

Creation of an Investment Policy Statement (IPS)

The IPS is a mutually agreed upon document articulating the account’s Objectives, Constraints, Asset Allocation and how we will modify and evaluate the progress of the account. It is based on the client’s specific situation, and the recommendations from the Plan.

Click to see a Sample IPS.

FAQ

It is the sum of the accounts that will be under our care. For example, two accounts of $375,000 within one household meet the standard. Excluded from the calculation are accounts that we cannot manage using our investments, such as College 529 plans and most 401Ks (some “self directed” 401Ks that avail the participant of the assignment to an investment adviser will count toward the minimum as we’ll be managing it like all other accounts). If a client has $750,000 among “manageable” accounts, Valentine Ventures will offer its advice on the best allocation among choices for all accounts it does not manage (like 529s and 401Ks). Once the threshold is met, we will generally invite in immediate family members who may not, on their own, meet the minimum.

No. As long as the combined values of all accounts under direct management equal $750,000 or more by household (see prior point above), the minimum requirement to form a relationship is met—there is no requirement to release all investment funds to Valentine Ventures.

No. Occasionally, long-held securities will have material unrealized taxable gains embedded in them. We balance the liquidation of these issues with the risks associated with holding them, and in consideration of the tax impact. Additionally, if a client holds a “sacred cow” (dearly held issue) there is no requirement to part with it. At times it may even be desirable to split an account into two, to allow us to manage a portion while the client manages the other, if that’s of interest to them.

Contractually, either party, the client or the firm, can terminate by providing a written notice to the other, 30-days in advance. However, Valentine Ventures typically waives the 30-day advance notice period if a client requests a termination. Aside from a final billing (based on a prorated amount of accrued management fees) there are no other charges or restrictions on the funds being released from the firm’s control.

Valentine Ventures’ sole compensation are the fees it charges, as described elsewhere on this site. In addition, the client pays trade commission on some, but not all, of the investments in their portfolio (typically $4.95 per equity trade and reasonable amounts on bond trades). The firm will often use Exchange Traded Funds (ETFs), each of which reduce their value by an Operating Expense Ratio (OER)–however the OER on ETFs is famously low compared to mutual funds.

Anyone that answers this question with a number/percentage, or a range of numbers/percentages, is either a fool or a charlatan or both. Valentine Ventures devotes its entire energy to maximizing returns within the risk constraints unique to each of its clients. The overall investment environment during the term of the relationship will determine the vast majority of the return, and that cannot be predicted nor avoided. The foremost goal is to establish a reasonable financial plan, and then execute it with the most appropriate investment mix.

For starters, we don’t have access to your money—by design. Your accounts are held by an independent custodian and brokerage firm (Charles Schwab & Co., Inc). Our firm is afforded, by you, a Limited Power of Attorney that allows us to trade the account, receive information about the account, move money to you (for you), and bill the account for management fees. We cannot distribute your funds to our firm.Ultimately, because of the importance we assign to our role as your fiduciary, we abide by a Code of Ethics, as mandated by the Advisors Act of 1940, and hold ourselves to the highest level of integrity and compliance of all laws and regulations.

Yes and no. Before a portfolio is constructed, the client is fully aware of what the construction of the portfolio will entail, and they will have approved of the Asset Allocation targets via the Investment Policy Statement. However, as investments are bought and sold, clients are not consulted as to their opinion of the desirability of the transaction. That type of collaborative relationship exists within a retail brokerage arrangement, but not a discretionary investment management relationship.

All investments, and their trade confirmations, are available for client observation shortly after transactions occur (clients have full viewing access to their account online 24 hours a day via the Charles Schwab website.) Additionally, the performance of all investments, individually and collectively, is communicated to clients at quarter-end. The firm goes to great lengths to communicate its ongoing investment strategy throughout the year.

At the current time, a Contingency Plan exists in the event that Mr. Valentine is unable to manage the firm that allows for an orderly shut down of the company. In that event, clients would be notified and assisted in the transition to a new firm of their choosing, if needed. Eventually, the firm will have the infrastructure, resources, procedures and processes in place necessary to ensure its survivability without the role of any one member of the firm, including its founder.

No, Valentine Ventures has not been accused of any violation of the law or its fiduciary duty to clients and is not aware of any such accusations pending. The members of the firm abide by a Code of Ethics, as mandated by the Advisors Act of 1940, and the firm holds itself to the highest level of integrity and compliance with all laws and regulations. As a Registered Investment Adviser, the company is held to the “fiduciary standard” obliging it to act solely in the client’s interest.

While we’d like to say that we’re right for everyone, we’re not. We are ideally suited for individuals that would like to deliberately plan for financial independence (or the maintenance of said independence if it’s already been achieved), and who understand their own limitations in managing the assets that assist them in that regard. Our clients trust the financial planning process and its output, and are comfortable delegating the authority for investing because they lack the time, interest, expertise, or emotional restraint (or some combination of those qualities) to manage their own investments.

Valentine Ventures Vault Login

  • Valentine Ventures’ Quarterly Reviews, Performance, and Invoices
  • Investment Management Agreements, Investment Policy Statement, and Financial Plan
  • Our firm’s regulatory filings and related documents

Charles Schwab Login

  • Real-time information for account balances, positions, and transactions
  • Charles Schwab monthly custodian statements
  • Year-end tax reports

We’re local…no matter where you are.

Through the use of technology (video, audio, online) we are your local adviser, no matter where you are located.

Interested in becoming a Wealth Management client?

If you have more questions, refer to our Frequently Asked Questions or contact us.

To begin a dialogue with Valentine Ventures or Valentine 401(k), submit your inquiry here.

Contact Valentine Ventures
Bill ValentineWealth Management