• The design concept for Ripsaw® Wealth Tools is to combine connected account information, data sources and financial modeling to provide a comprehensive set of tools for financial planning and wealth management.

 

  • A procedure is also available to include assets and liabilities that are not accessible online (e.g., private company stock, employee options, personal loans, stored stock and bond certificates).

 

  • Ripsaw® Wealth Tools independence means that we have no intention of ever being an investment advisor, sell personal data or push particular investments.

 

  • While the investment process allows for maximum user control via editing, default values are available to make the process flow with less effort. The library of video tutorials is intended to make onboarding easier as well.

 

  • All assets and liabilities are populated in a user balance sheet. The focus of wealth management is on the market value and composition of personal net worth contained in the Ripsaw® dashboard. Real Assets, Cash, Bonds and Stocks are the top-level asset allocation decisions. However, at the same time the user must select the composition of their bond and stock portfolios.

 

  • Ripsaw® Wealth Tools provides a continuous investment process for portfolio construction, monitoring and revision.

 

  • The dashboard decomposes the bond portfolio risk dimensions into its distribution of credit quality, maturity structure, bond sectors and geography. The stock portfolio is decomposed into its distribution of capitalization, value/blend/growth, stock sector and geography. These portfolio risk dimensions are the aggregation of the individual investment risk dimensions observable in each account.

 

  • The dashboard keeps track of portfolio level yields, expense ratios, advisor and administrative fees. It also has an investment mode that abstracts from real assets and associated liabilities to focus on the investment portfolio.

 

  • The net worth analysis provides real asset allocation relative to the investment portfolio allocation of cash, bonds and stocks. Real estate allocation is often very high for younger homeowners. Their mortgage is a short (borrowing) bond position within their bond portfolio that may even overwhelm other bond investments.

 

  • The home mortgage market value is its present value at the currently available mortgage rate. If their existing mortgage rate is at a higher level than currently available, they will see the quantitative benefit of refinancing or prepaying their mortgage. In revision mode, they can consider the effect on their entire portfolio of using various sources of funds for partial or full prepayment or refinancing. If their existing mortgage rate is lower than currently available, they will see the value of maintaining their low-rate mortgage.

 

  • If the user is contemplating the purchase of a house, they can use the real estate wizard in revision mode to value a specific house, consider financing options, source the down payment from existing accounts and consider revisions to their investment portfolio as a result of the purchase.

 

  • An automobile is also a real asset with the same analysis available as described for a house.

 

  • If the user is drawing on a pension, social security or annuity, it can be added to their balance sheet and valued by Ripsaw® as part of their bond portfolio. If the user is approaching retirement, there is a wizard in revision mode that can be used to see the effect of adding these assets to their balance sheet and how it would affect their bond portfolio and any reallocation of other investment decisions (i.e., cash, bond and stock asset allocations and the composition of those allocations).

 

  • The key to disciplined investment management is to compare your portfolio risk dimensions to that of a tradeable customized benchmark portfolio (Strategic Asset Allocation) that reflects your investment objectives and risk tolerance. Ripsaw® guides the user through the selection of their customized benchmark and keeps track of its risk dimensions and return.

 

  • Target date asset allocation strategies are also available for the entire investment portfolio.

 

  • A user’s portfolio incremental risk is measured by its deviations from its custom benchmark. Benchmark deviation indicators help avoid drifting too far away from investment objectives.

 

  • Passive investors will want to closely match their benchmark allocations while active investors can take measured differences. Then performance is measured by the return above or below the benchmark for that incremental risk.

 

  • A unique portfolio revision mode considers “what if” life event and investment decisions before making actual trades.

 

  • The Ripsaw® Screener is designed to be an efficient search process for identifying investments with specific risk exposures at low expense ratios and add them to designated accounts.

 

  • The Ripsaw OptimizerTM solves for the user’s preferred asset allocation across numerous securities with 56 risk dimensions across many accounts with one click!

 

  • The Ripsaw® “Assist” tool identifies underweights in their portfolio, screens for available investments that satisfy those characteristics, adds them to their account(s) and performs an updated optimization.

 

  • Tax efficient, tactical and strategic asset allocation strategies can be implemented with position sizes and constraints that maintain intended risk exposures while minimizing unintended ones.