For many people, tax planning consists of a February visit to their accountant and a discussion of what they should have done last December. At NCA, our planners consider year-round tax planning ideas. Since we meet with our clients on a regular basis, we often take the opportunity of a fall meeting to address methods and strategies for year-end tax planning. We attempt to optimize for our clients the timing of either income or deductions and to highlight any changes in the tax law that might affect the coming year.

Business and professional people today must ponder many financial and legal questions. After asking friends and acquaintances, they often make a decision in exasperation based on their best guess.

A client of NCA has the opportunity to tap into the professional expertise of our entire staff. The day-to-day inquiries from our clients span a wide range and include such questions as:

• Do I buy or lease the car?
• Which is better, a lower price and higher interest rate or a higher price and lower interest rate?
• Is this a good investment opportunity?
• Do living trusts make sense for me?
• Is now the time to finance?
• How much should I save each year?

In addition to responding to these types of questions, we have helped clients with employment contract negotiations, lease negotiations and myriad other situations.

We often share with our clients the experience of others with respect to the non-financial side of retirement planning. We have provided meetings discussing everything from "Do you really want to relocate?" to "Developing outside hobbies and interests." For many clients, our meetings provide an opportunity to both learn and share ideas with others.

Most parents today are committed to doing whatever is required to provide for the education of their children. With college costs soaring at a rate higher than the general inflation rate, it is imperative for parents to start saving early. In addition, several investment vehicles are available today to fund a child's college education. NCA provides its clients with the information necessary to devise the best possible plan of action.

Twenty years ago, 99% of financial planners were insurance agents in disguise. Today things have changed - only 95% are insurance agents in disguise. Although we make this statement somewhat facetiously, our staff just comes from a different perspective.

NCA reviews the client’s life, disability and casualty insurance in light of their assets, income and needs. We feel most people overpay for insurance and thus encourage clients to competitively shop insurance on a regular basis.

Unlike people in the life insurance industry, we believe you buy insurance to protect against dying too soon. You make investments to protect against living too long.

NCA employs a four-step process in providing its investment planning services. First, we compare the client’s business/professional and personal financial goals and objectives to the structure and performance of the current portfolio. Second, we design a diversified portfolio. Third, we help to implement that design. Finally, we monitor performance and report results.

Analysis

The process begins with an analysis of the client’s present investment portfolio in terms of overall diversification, historical performance, and congruence with the client’s objectives and risk tolerance. *Diversification and suitability are measured to see if the portfolio as structured will meet the client’s needs and if rates of return are commensurate with the risks assumed.

*Diversification does not assure a profit nor protect against loss.

Design

In light of the analysis and the client’s stated goals and risk tolerance levels, recommendations are made for the current portfolio. In making recommendations as to asset repositioning, NCA determines the proper percentage allocation among generic categories, as well as the type of investment style to utilize within each of the categories.

In determining the proper allocation for the client’s proposed portfolio, NCA relies on both quantitative and qualitative input. While experience provides the insights about investments suitable to the client’s profile, we also utilize a sophisticated analytical software program that has at its core a database with 20 years of data on over 50 different generic asset categories. This program analyzes the mean rate of return for each generic asset category as well as the variability in that return. At the same time, the program compares the rates of return and the variations in that return for each of the different investments to determine how each performs in relation to the others.

Once the data is analyzed in this fashion, the program determines the optimal mix of assets to help increase the client’s return while reducing the risk.

Investors need to be aware that no investment plan/asset allocation can eliminate the risk of fluctuating prices and uncertain returns.

Implementation

In determining the specific investment managers to use in building the portfolio, NCA relies on extensive due diligence. This due diligence covers the full range of investment managers in each of the generic categories to determine which managers have the best documented records of performance. Our evaluation includes a quantitative analysis of past performance using both a computerized database and information provided by independent sources. In addition, NCA principals meet and/or speak with the key individuals that will be managing each of the investment programs.

Monitoring

NCA continues to monitor each investment program, proactively recommending changes where they are deemed appropriate. Communications include regularly scheduled meetings with clients to review a comprehensive performance report. Further, NCA’s principals and staff are fully committed to making themselves available to respond to client questions and input.

In performing these functions, NCA should be viewed as the “conductor of an orchestra,” prudently and knowledgeably recommending investment companies and/or managers (e.g., stock and bond money managers, investment bankers, insurance companies and commercial bankers) who can provide products and services consistent with the goals and objectives of the diversified portfolio designed by NCA. Additionally, multiple sponsors are selected based upon a careful analysis of track record in their respective areas of expertise. By adhering to the above disciplines and adding in our 30 years of experience, we strive to make your relationship with NCA rewarding.