About HK Wealth Management
HK Wealth Management, Inc., was formed in 2009, a rocky time in the markets to say the least, but the need for investors to get a higher level of attention to their portfolios was so pressing, the timing couldn’t have been better. Most investors have seen nearly half of their portfolios wiped out in 2 distinct market draw-downs since the millennium. If you look at any chart of the major indexes, there was a huge drop as the tech bubble burst in early 2000 which lasted well into 2003. Then the markets saw a meteoric rise through the middle of the decade, only to see another meltdown in 2008 and 2009. Even with some rebounding, then end of the decade saw most account values closing out just about where they started 10 years prior. The first 10 years of this millennium will go down in history as the lost decade for investors. Is this any way to a secure retirement? No!
Actively Managed Individual Accounts
The necessity to have some kind of active management in portfolios became so obvious, that HK Wealth Management, Inc., was established to help find the right kind of management for investors who have suffered the catastrophic effects of a “buy and hold” mentality in a market that does not care at all whether their accounts go up, down or sideways. This is accomplished through a different approach to investing, the Individually Managed Account, or IMA. An individually managed account is tactically or strategically administered by an investment manager who has the responsibility to allocate the funds accordingly for the purposes of minimizing risk and maximizing return. Capital preservation is so important in down markets, maybe even more so than making money in up markets. In an individually managed account, the investment manager is not mandated to keep money in harm’s way when it makes sense to move it to a position of safety. This is key! While this is not a new concept, it has rarely been available to most investors because of the minimum dollar amount generally required to engage anyone to actively manage their money.
Assessment of Client Goals and Risk Tolerance
If an investor wants to open an account with HK Wealth Management, Inc., they must take a risk questionnaire which establishes their basic temperament and objectives. Risk tolerance may perhaps be the most important metric in selecting the proper manager, but other factors include, time horizon, tax considerations, cash flow needs and liquidity. Once these are established, the appropriate manager[s] can be engaged to manage the accounts.
It’s really that simple. The need for active management instead of passive neglect is mathematically imperative in these times if investors really seek a secure retirement. HK Wealth Management, Inc. strives to match up the investors needs with the account managers who will serve them.
Multiple Fund Managers and Custodians
HK Wealth Management, Inc. does not take custody of client funds, nor does it make the decisions on when, where and how the funds are invested. We are a Registered Investment Adviser with multiple solicitor agreements with some of the top investment firms in the industry. All client monies are held in custody at independent third party banks and the investment decisions are made by the managers of choosing by the client. HK Wealth Management, Inc. serves our clients by helping them understand the methodologies used by the companies we recommend, and then servicing the account only in an administrative capacity.