Pinney & Scofield, Inc. offers the combined services of financial planning and portfolio management. Our clients are able to concentrate on the important things in life, such as family and community, because they have the confidence that their finances are in great shape. This confidence is born from the knowledge that there is a plan in place and that we are actively monitoring their finances. We look for and use the very best in academic theory and apply it to the financial planning and investment recommendations we make.
– We enable our clients to get a clear view of their finances and, if necessary, to develop savings patterns adequate to fund future goals such as college education for children or retirement. See our Principles of Financial Planning
for the scope of our planning process. The financial plan allows us to understand the client’s objective and subjective ability to bear risk and is the single most important aspect of the portfolio allocation decision. The portfolio asset allocation – the percent of the portfolio in fixed income vs. stocks – is to our mind the basic portfolio decision. This decision should be based on factors specific to each client and client portfolio.
– Our portfolio management method, described in detail in Principles of Investing
, is based on the idea that markets are efficient and that market activity cannot be predicted. We establish fully diversified portfolios of index-style mutual funds (see Factor Funds versus Index Funds
). Accounts are located at Charles Schwab & Co., Inc. Pinney & Scofield, Inc. is granted a limited power of attorney. We monitor the accounts and place the trades necessary to rebalance the portfolio to restore allocations to the desired targets. In addition to Schwab’s monthly account statements, clients receive reports on a quarterly basis from us along with a letter (see our past letters
) discussing the accounts and current events. We also provide all necessary tax information on the accounts.