Proctor was founded in 1994, and is owned by Tony Proctor and Stephen Doucette. The firm
has been providing advisory services since 1997.
Investment Management Services
Proctor provides a full-service investment management solution, specializing in working
with clients at or near retirement. We comprehensively gather important facts, goals, and
plans of our clients and build completely customized investment allocation plans. Once the
plans are completed, we review the plans with our clients, get approvals, and then actively
select, monitor, and modify as needed the specific investments in accounts that are
established in our clients’ names at nationally-known independent custodians. Periodically
we also rebalance our clients’ investment accounts as they move closer to their goals, or as
market conditions dictate. All aspects of the client’s financial affairs are reviewed, including,
in some cases, those of their children. As goals and objectives change over time, suggestions
are made and implemented on an ongoing basis.
The scope of work and fee for Investment Management Services is provided to the client in
writing prior to the start of the relationship. An Investment Management engagement
includes (as needed): cash flow management; insurance review; investment management
(including performance reporting); education planning; retirement planning; estate
planning, as well as the implementation of recommendations within each area.
Client assets are often invested in no-load mutual funds, usually through discount brokers.
Fund companies charge each fund shareholder an investment management fee that is
disclosed in the fund prospectus. Discount brokerages may charge a transaction fee for the
purchase of some funds.
Stocks and bonds may be purchased or sold through a brokerage account when appropriate.
The brokerage firm charges a fee for stock and bond trades. Proctor does not receive any
compensation, in any form, from fund companies, and does not receive any portion of the fee
charged by discount brokers to execute trades in client accounts.
In addition, at times when Proctor feels conditions are favorable for such actions, the firm
negotiates with large investment banks to create customized bonds, commonly known as
Structured Notes or Enhanced Investment Notes (Notes), to use in client
portfolios. Typically, these Notes provide some type of advantage over investing directly in
equity indexes, while still participating to some extent in equity returns.
The advantages often consist of partial to full principal protection; leveraged upside return
without corresponding leveraged downside return; access to hard-to-access indexes;
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absolute return characteristics where the Notes return a positive return regardless of
market direction; and high interest coupons relative to current rates. A particular
risk associated with these Notes is creditor risk, which we monitor closely.
Liquidity is
another unique risk for these Notes, as the only market for these securities is provided by
the investment banks that issue them, and they do not guarantee that they will maintain a
market for them before they mature. Despite the lack of guaranteed liquidity, issuers may
be willing or may intend to redeem these Notes before maturity upon request at current
market values, though most Notes are meant to be held to maturity. Typical maturity for the
Notes we buy in client portfolios ranges from 6 months to 3 ½ years.
Tailored Investment Solutions
For each of our clients, Proctor creates a completely customized asset allocation plan that is
based on their specific cash-flow needs in and before retirement. Utilizing our proprietary
Time-weighted Cash-flow Methodology (TCM), we calculate the net present value of the
cash-flow needed by a client every year for at least the next 40 years. With this information,
we build an asset allocation plan designed to manage short-term risk against the goal of long-
term returns. After building the asset allocation plan, we select the specific investments that
go in client accounts, and monitor and make changes to those investments as necessary.
While it is possible for clients to request restrictions on investing in specific types of
securities, Proctor generally feels that clients are best served when relying on Proctor to
determine the types and amounts of securities to be purchased and sold.
As of December 31, 2023, Proctor managed approximately $332,822,197 on a discretionary
basis.
Incidental Financial Planning Services
For nearly all of our clients, Proctor also furnishes advice on matters not directly involving
investments, such as financial planning matters, taxation issues, college funding issues,
insurance planning, and estate planning. Advice is provided through consultation with the
client and may include: determination of financial objectives, identification of financial
problems, cash flow management, tax planning, insurance review, investment management,
education funding, retirement planning, and estate planning. Typically, no separate fee is
charged for this service.
Tax Preparation Work
Tax preparation work is offered as an additional service for investment management clients
only. This work is billed based on the time spent preparing the returns, with an hourly rate
of up to $150 per hour. For clients with managed assets of at least $2 million as of the end
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of a year, tax preparation for that year is offered with no additional cost. Eligible federal and
applicable state returns are filed electronically without an additional fee.
Retirement Planning Course
Proctor occasionally teaches a four-part, 10-hour course on retirement planning. This
course typically costs between $44 and $69, and is open to the public, including current
clients. Clients are allowed to attend the course at no cost.