Fiduciary Responsibility

Being a fiduciary means an advisor is obligated to do what is in the best interest of the client.  Instead of selling products with large commissions or high fees that have better alternatives, a fiduciary must make the best decision for the client in his/her recommendations.  At Chevron Financial we believe strongly in the concept of being a fiduciary and represent all clients in that manner in all situations.  We don't just believe in the legal and regulatory aspects of fiduciary responsibility; we believe in the spirit of the rule.  We give our word that we do our best to make the best decisions for every client, every time.

Investment Advising

Investment advising is the core function most people think of when discussing financial advisors.  Most advisors follow a similar approach, determining a risk target and investing funds to achieve the best possible return for that level of risk.  As simple as that sounds, it's very difficult to do well.  More people than not suffer from misaligned risk, excessively high fee products, or returns that are below expectation for the amount of risk taken.

Chevron Financial uses a system based on Nobel Prize-winning Prospect Theory to align the risk of each client with their portfolio.  We use a system or rating portfolios based on their risk-adjusted returns that's based on a GPA scale of 1.0 to 4.3, making it easy to understand without any knowledge of the underlying inputs and metrics.  As a new firm without a long track record of success, using cutting edge technology solutions to support our decisions and judgements is an important piece of performing well and providing peace of mind.

Financial Planning

Financial Planning is an included service for all our investment advising clients.  It can take on very simple or very complex forms and we offer a wide range of options.  It can be as simple as using how much you have, how much you'll save, and how much you'll spend to determine a probability of success.  On the other hand, it can use hundreds of inputs with thousands of options, multiple proposed plans, and 1,000 Monte Carlo simulations run for each to determine probability of success and ranges from high to low.  

We use a cutting-edge software system to aid in financial planning, but as always, the most powerful part of a plan is learning the intricacies of a client's situation and understanding the options available based on that.  Our clients receive an annual review and updating of their plan to reflect their current situation.  Unexpected options are often uncovered, like better ways to handle student loans, tax-efficient methods of managing IRAs, and how to best plan for future educational expenses. 

Financial Decision Assistance

Investment advising and financial planning are common, but the most ignored part of financial decision making is usually ignored, largely because it doesn't directly contribute to revenue for advising firms.  That area is assistance with large financial decisions.  Those decisions may not provide revenue for an advisor, but they are a huge part of the financial well-being of clients.  At Chevron Financial we believe in helping with these decisions, every time, regardless of size.  If we are asked to help, we will.

Large financial decisions can mean a variety of things.  For purchasing a home it can include a budget, down payment size, what type of loan to get, who is a good loan officer, etc.  For a car the decision involves leasing vs buying, the price of the car, the money factor for a lease, money down, financing options, and more.  Student loans involve payment plan and forgiveness options, forbearance options, and widely varying interest rates.  Each type of decision has a dizzying number of considerations and the number of types of decisions is even greater: credit card debt, what type of credit should I use, reverse mortgages, HELOC loans, rental properties, stock options at work, starting a side business, and so on.

Our promise is that if you ask for help with a financial decision we will help you to the best of our ability.  If we don't know the answer we will find it, if at all possible.  If we can't find it we will refer you to someone who does instead of making something up.  We don't have every answer to every problem, but we want to help wherever possible.  These services are included at no additional cost to our clients, regardless of how much you have invested.

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