Private Wealth Financial Plan

About Warren Financial

At Warren Financial, we find truth in the idea that you can achieve your financial goals when you have a Greater Purpose in mind, going beyond just financial security.  Our mission is clear: to assist our clients in achieving their financial objectives so that they can achieve their Greater Purpose.  Our commitment in this process is to place fiduciary responsibility above all else.
We believe wealth management is not just about maximizing returns, it is about achieving your goals.  Effective wealth management is about guiding our clients which helps to create peace of mind, when emotions might persuade them otherwise.
Mitigating risk in portfolio management begins with a fully custom portfolio construction, not a cookie cutter approach which forces a square peg into a round hole.  We believe in a scientific approach, not an academic approach.
A rigorous holistic financial plan begins with your goals and ends with you achieving “Your Greater Purpose”.
Warren Financial What's Your Greater Purpose

Private Wealth Management

Wealth Management begins with client discovery and analysis which helps uncover the personal and family “Greater Purpose”.
We build a comprehensive computer model of your personal situation, built from the combination of your specifics along with a database of nearly 100 years of market and economic history against which to simulate the future. The outcome is this: Your goals, plus our technology, equals the optimal long-term plan.  Your plan takes into account:
  • Family Goal Setting and Expectations
  • Debt Utilization and Savings strategy
  • Cash Flow Management
  • Social Security Optimization
  • Retirement Strategy and Draw Down Implementation
  • Custom Asset Allocation
  • Scenario Based Testing for Lifelong Adjustments
  • Wealth Transfer, Estate Planning, Wealth Protection
  • Charitable Goals and Resources
Once we truly understand our clients’ objectives and determine the appropriate means to achieving them, we can determine what investment demands to place on the assets.  Investment return objectives are weighed against risk tolerance and mitigation strategies to form the core of the investment portfolio.
Warren Financial Client Wealth Management

Investment Services

Achieving your objectives involves deploying assets with the goal of achieving after-tax real returns on capital.
  • We blend assets around the globe with emphasis on geographical allocations that produce high “real” returns.
  • We blend active management with low cost passive indexes to produce a cost effective solution.
  • We blend value investing with growth investing for potential enhanced risk adjusted return on investment.
  • We blend sector selection with individual stock and bond selections to mitigate idiosyncratic risks while emphasizing the best companies in the best sectors of the economic landscape.
  • We blend credit strength via bond selection, balance sheet strength and income growth for stock selection, with non-market-correlated alternative investments to produce an asset mix with potential to generate enhanced returns.

 
Asset classes include a global mix of:
  • Cash & Cash Equivalents
  • Muni, Gov’t, Sovereign, Investment Grade, High Yield Bonds
  • Preferred stocks
  • Emerging Market equity and bonds
  • US Large, Medium, and Small Cap Equity
  • International Large, Medium and Small Cap Equity
  • US and International REITs
  • Non-market-correlated alternative investments
Private Wealth Management Investment Services

Fully Custom Equity Portfolios

In the process of creating each client’s custom portfolio, we tailor each account to the particular client’s financial goals, risk tolerance, tax status, and special situation.
Our global investment strategies position us to meet client preferences that vary along the risk/return spectrum.  Combining asset classes in a single optimized portfolio using scientific macro economic principles to guide selection may offer superior performance potential.
Equity allocations are structured to maximize returns via taking advantage of large, long lasting macro trends while also controlling risk.  We don’t only accomplish this goal via diversification, although clearly diversification is a valuable tool.  We go beyond diversification becoming more tactical in nature to ensure that assets are placed around the globe in areas where they are more likely to receive exceptional real (after inflation and after tax) returns.
For the fixed income portion of the account, the most important factor is safety of principal.  Our goal is to generate a reliable stream of income from risk adjusted carefully selected bond investments and custom ladders.
WF Global Investment Strategies
Finally, there are other non-Wall Street investment classes such as non-correlated Alternative Investments that can sometimes play a significant roll in reducing overall volatility of the client’s portfolio.
Volatility itself has become an asset class in the last decade and Warren Financial has captured that opportunity to create a custom fund for our accredited clients.
The confluence of all this Wall Street research with scientific custom portfolio creation produces the best overall chance for the client to meet “Your Greater Purpose”.

Client Discovery

Client Discovery produces a set of objectives, calendar of events, and to-dos:
  • Next generation college and post graduate calendar for all the children or grand-children
  • Current funding sources for educational goals
  • Retirement spending objectives and funding sources
  • Post Retirement – Next segment of life – Greater Purpose

Current Asset Allocation

Client discovery combined with Warren Financial Investment Committee market specific inputs drives the derivation of the desired Asset Allocation.

Cash Flow Planning and Forecasting

Cash Flow Charts

The thing that’s important about the “Income & Assets Chart” is to notice that value of “Total Assets” continue to climb.  The investments are growing faster than the spending, forever.  Another major factor is a good return on investment.  The assumption here is a constant 8% average annualized rate of return.  We can stress-test this plan utilizing our custom monte carlo statistical analysis which accounts for the volatility of real returns.  Also, it is useful to consider how the plan differs if portfolio returns are less/greater than expected – for example, a 5% average rate of return would likely produce a downward sloping Income & Assets Chart in many cases.  Spending (budgeting) and Investment Strategy (asset allocation, asset selection) are two of the controllable levers that can be used to create a constantly growing Income & Assets Chart.

Proprietary Algorithmic Financial Planning

Utilizing a proprietary algorithmic process, we can statistically analyze significant client life events, such as retirement.  Our tool combines 100 years of asset returns in a database with the social security administration database and client specifics.
Each retirement model begins with 1000 lifetime simulations to produce a baseline.
Then “What-If Scenarios” can be run by simulating 1000 more lifetimes.  All variables can be modified.  The model comes alive as it continues to guide financial decisions toward your Greater Purpose.
Each lifetime includes at least 30 years of data created by choosing randomized years from the market database.  All expenses are indexed to inflation.
In this simulation the optimal solution is Scenario 2-A.   It allows you to spend the most in retirement yet still have less than a 5% failure rate, ie. you still have a 95% confidence of success.
Note: the annual return percentage is calculated by the monte carlo statistic, not an assumed rate.
Monte Carlo statistical process. If the WF Effect is on, we artificially limit downside to no more than -20% and increase upside by 1-2%/year – this may not be applicable to your portfolio, is not a promise or guarantee, and may not be achieved. It is an objective, a simulation of actively attempting to control risk and reward.

Bond Ladders

Bond Ladders play a large role in many HNW and UHNW portfolios. Typically the goal of the bond ladder is to develop a predictable income stream along with highly certain asset protection, even at the expense of higher returns:
  • Muni Bonds – despite their relatively low return profile, muni bonds have a history of stability and are typically tax free.
  • Corp Bonds at investment grade levels can provide a bit higher returns. High Yield bonds are typically not held in ladders, but are the exception – typically held in funds to diversify against default risk.
  • Bond Ladders in separately managed accounts are utilized instead of bond funds (except high yield) because ladders provide the “hold-to-maturity” highly certain return on invested capital which is lacking in bond funds.
  • Bond Ladders also protect the investor during a rising rate environment by owning some bonds that mature within the next year, so that returned capital can be re-invested in longer term bonds with higher rates.
Private Wealth Management Bond Ladders

Alternative Investments

Alternatives play an important role for accredited high net worth investors and institutional investors.  These investors typically seek to find investments of various risk/return characteristics that are not highly correlated to Wall  Street markets.  Warren Financial and our Family Office partners have put together a short list of fully vetted alternatives. For complete information, please discuss these options with your Warren Financial relationship/portfolio manager.
The Warren Safer-Equity Fund – The key advantage to this fund is that it utilizes a unique volatility hedge (custom created by Warren with options on VIX futures, not via any ETF or ETN fund).  On the long side, the WSEF invests in strong companies mostly in the US large cap space but with the freedom to go anywhere.
WSEF: Monthly returns based on changes in the NAV as reported by administrator Alter Domus and confirmed by annual audit via Eisner Amper. Returns calculation: Compound daily changes roll up to monthly change. Annual calc: For a full year: (EndNAV/BeginNav)^(1/(#days/365) -1. For part year (not annualized): Compound daily change. Multi-year calculation: (EndNAV/BeginNav)^(1/(#days/365) -1. Dividends reinvested. After fees. See full disclosures on website. “Academic Portfolio” a.k.a, “Globally Diversified Portfolio” is a strategy we have observed in the industry. We calculated it, consisting of low cost ETFs all adjusted to include dividends 20%SPY, 25%AGG, 10%GSG, 25%VEA, 10%BIK(2008-2012), 10%IEMG(2013-current), 5%IWM, and 5%EMB after costs. The Academic portfolio is not equivalent or comparable to the SP500 or the WF portfolios because it is not comprised of the same components, specifically, the Academic portfolio includes bonds, small caps, emerging markets, commodities, etc which are not part of the SP500 nor part of the WF portfolio. All public ETF returns calculated using adjusted closes incl div after fee as reported by TD Ameritrade and/or Yahoo Finance. Benchmarks are not equal in composition or risk. Inception-to-date numbers for “the most recent quarter” use days, not years to calculate the ROR and thus is slightly different than annual ROR.

The Team at Warren Financial

Randy Warren CEO Warren Financial

Randall Warren is Chief Executive Officer of Warren Financial, a registered investment advisory firm founded in 1965 by his father.  Randall joined the firm in 2000 after spending nine years as Chief Technology Officer at FNX Limited, where he was responsible for creating sophisticated option trading and portfolio modeling tools for companies such as Bank of America, Credit Suisse, Deutsche Bank, etc.

Among his civic duties Mr. Warren served several years on the West Chester Univ President’s Advisory Board.  He served several years on the Advisory Board for Snider Youth Hockey and many other boards.  Mr. Warren has an MBA in finance from West Chester Univ and a BS Comp Sci from Univ of Delaware.

Warren Financial Team Troy

Troy Logan is a Managing Partner and Chief Economist with Warren Financial.  Troy joined Warren in 2008.  Troy is responsible for developing investment strategies for the firm’s client base, consisting of high net-worth individuals, trusts, endowments, and small businesses.  He is also co-manager of the WSEF.

Prior to joining Warren, Troy served as Vice President and regional risk officer for American Express in New York where he was responsible for underwriting policy for the US, Latin Am, and South America.  He began his career at Wells Fargo in San Francisco.  Troy received a BA in Economics and a M. Sc. in Applied Economics from the Univ of CA at Santa Cruz.

Scott Shellhamer Managing Partner Warren Financial

Scott Shellhamer joined Warren Financial in 2012 as a Managing Partner focusing on portfolio investment strategy for clients.  Scott has over 25 years of experience in financial services.  Before joining Warren Financial, Scott was a Vice President and Head of Equity Trading for Lockwood Advisors, an affiliate of Pershing, a BNY Mellon Co.

Prior to that, Scott ran the trading desk for a small investment boutique specializing in managing large pension funds and was also a partner at a mutual fund company running their trading strategies.  Scott holds a BS in Finance with a minor in Economics from Penn State

Warren Financial Team John

Coastal Carolina/Hilton Head:  John O’Toole joined Warren Financial in 2014 as a Managing Partner focusing on the Hilton Head and Charleston region.  John brings more than 25 years experience in financial services and a specialty focus on financial planning.

Prior to joining Warren Financial, John served as vice president with RBC Wealth Management and Smith Barney where he specialized in developing and implementing wealth strategies for clients.  John holds a CRPC (Ch Retirement Planning Counselor) and a BS in business from St. Edward’s Univ in Austin TX.

Warren Financial Team Bob

Atlanta:  Bob McCarty joined Warren Financial as Managing Partner in 2015.  He is responsible for developing new client relationships and managing the investment strategy for his portfolio of clients in the greater Atlanta area.  Bob brings over 30 years of experience in corporate finance, M&A, and private equity.

Prior to joining Warren Financial, Bob was the Director of Ops & CFO for a start-up accelerator servicing the tech maturation needs of entrepreneurs and start-up technology firms, Fortune 100 companies, big 4 consulting, private equity, and gov’t funded search organizations.  Bob holds a Cert in Private Capital Markets from Pepperdine Univ, and MBA from Wake Forest, and a BS from Oakland Univ of Michigan.

Warren Financial Team Karen

Karen Copeland is the Technology Director for Warren Financial focusing on client privacy and security features across the firm as well as website design.  Karen joined Warren Financial in 2005.  Prior to joining Warren Financial, Karen was a Senior Software Engineer for Lockheed Martin and Unisys.

Karen has over 25 years of programming and technology experience.  Karen holds a B.S. in Computer Science from the University of Delaware.

Justin Sisson joined Warren Financial as a Financial Analyst in 2015.  He is responsible for running all the back office systems at Warren Financial including putting together performance reports, reconciling funds, and performing equity research.  Justin came to Warren Financial with a BS in Business from Messiah College, Harrisburg, PA.

Austin Warren joined Warren Financial as a Financial Analyst in 2018.  He is responsible for running all the back office systems at Warren Financial including putting together performance reports, reconciling funds, and performing equity research.  Austin came to Warren Financial after 1+ years experience at Vanguard.  Austin has a BS in Business from Messiah College, Harrisburg, PA.

Jordan Sisson

Jordan Sisson

  • Customer Success Advisor Philadelphia
  • B.S. Finance, Eastern U
Devin Paul

Devin Paul

  • Customer Success Advisor, Houston
  • B.S. Finance, Texas A&M

Hattie Warren

  • Customer Success Advisor, Charlotte NC, Austin Tx
  • Cert Fin Planner candidate B.A. Business, Gordon College

Timeless Advice

  • Our Corporate headquarters is in a 300+ year old restored Chester County barn.
  • The barn is more than just a building.
  • The barn is symbolic of the history, stability, and timelessness of solid financial planning and advice.
Additional Advisory Services:
  • Custom Portfolio Construction
  • Wealth Planning
  • Asset Protection
  • Estate Planning
  • Tax Strategy
  • Rental & Commercial Real Estate
  • Family Business
  • Philanthropy
  • Mortgage Strategy & Execution
  • Warren Safer-Equity Fund
Example:  Family Business Services…
  • Incorporation and Corporate governance
  • Setup your company retirement plans such as 401k, Simple, SEP, Deferred Comp, restricted stock, etc.
  • Allow Warren Financial to provide advice and manage the retirement assets of your executives as a perk
  • Business strategy analysis and Small Business valuation
  • Cash flow strategies and company growth plans
  • Succession Planning
Warren Financial Exton Office