Charleton Financial



195 Norris Drive
Rochester, NY 14610





Michael Charleton, April Booth, Portfolio, meeting
Your Portfolio

When we hear the word “portfolio” most of us think of our investments. At Charleton Financial, we take the big picture view that your real portfolio is the combination of your investments, your life insurance policies, your long term care policies, and your cash flow. It is a dynamic picture that depends on both your ever-changing circumstances and the external economic environment.

This is why we talk about planning as a verb, not just “the plan” as a noun. Management of your integrated financial portfolio is a major, vital component of the financial planning process.

The following summarizes the Charleton Financial approach to investment very succinctly: 

  1. Look to the long term. Your portfolio was designed in anticipation of volatility, not in response to it. We are constantly studying market conditions and their effect on your capital.

  2. You need to be properly diversified in your portfolio.

  3. Focus on good-quality investments and competent portfolio managers. Our review of your portfolio managers' past performance, in relationship to their peers, substantiates a history of quality investment decisions that we believe will continue in the future. 

We build your portfolio with market conditions in mind. It's designed to do well in the good times, and cushion some of the rough times. That's why we work with the professional portfolio managers offered through our Broker Dealer, Cambridge Investment Research, to help manage your wealth.


Books, Investing

Your choice of investments will depend on your investment goals, the time frame for achieving those goals, and your tolerance for risk. To invest successfully you should diversify your investments among various classes of assets, like stocks, bonds, cash, and other instruments–in other words, not putting all your eggs in one basket. We take that even further, diversifying each asset class into multiple styles, and finally select a variety of managers to carry out the plan.

We use what Mike calls The Three Bucket Approach. We divide your assets into the three buckets of Fixed Income, Balanced, and Diversified Growth, allocating a certain percentage to each, depending on your investment goals and risk tolerance.

Fixed Income offers the benefits of safety and security, Balanced offers stability and consistency, and Diversified Growth offers control and legacy.

Stocks are the foundation for long-term investment. They have consistently delivered the best returns over the long run–history is clear. Higher returns entail higher risk and greater volatility, so you need to stay invested when the market drops. Fleeing stocks for “safer” investments in bear markets will only reduce your long term returns. For the same reason, we avoid the folly of market timing, which attempts to second guess the market, by anticipating price movements.

Mutual Funds
Charleton Financial has access to a wide range of mutual funds to suit the investment goals of your financial plan.

Bonds are loans that investors make to issuers–usually governments, municipalities, and corporations. They help to build a balanced portfolio because they come in a range of maturities, interest payment terms, and credit ratings.

In exchange for a purchase payment, or a series of payments, an insurance company will guarantee you a stream of income in the future. Immediate annuities begin paying you within twelve months of issue, while deferred annuities accumulate assets for your retirement. You decide when the payments begin and how long they last. Guarantees are based upon the claims paying ability of the issuing company.

Investment Products
There are countless investment product alternatives currently available including:

Asset Management Programs

  • Mutual fund programs
  • Separate account manager programs

Professionally Managed Investments

  • Mutual funds
  • Direct participation programs
  • Alternative investments
  • Variable annuities and life insurance
  • 529 college savings plans

Individual Investments

  • Common or preferred stocks
  • Corporate and municipal bonds
  • U.S. government and mortgage-backed securities
  • Zero coupon bonds
  • Certificates of deposit
  • Employee stock options

Life Insurance

Family, eyesLife insurance helps ensure that the finanical future of your loved ones and business isn't left to chance.  It can also be very valuable in providing income replacement, supplemental retirement income, account value growth as a source of financing, tax-deferred asset accumulation, and efficient wealth transfer.

There are two basic types of life insurance:  term and permanent.

Term life insurance is the most economical and provides a guaranteed death benefit within the specified term, but there is no return of investment at the end.

Permanent life insurance includes Universal, Variable Universal, and Linked Benefit policies, which provide tax deferment, premium flexibility, and cash value.  Linked Benefit policies combine long term care insurance with universal life coverage.

We find that a client may have multiple life insurance policies, but that they no longer fit the client's needs and situation.  As we develop your complete financial plan, we will review your insurance coverage and recommend adjustments if needed.

Long Term Care

Reaching up to the sky, freedomAny of us might need long term care, as a result of accident or injury, or because we are suffering from a chronic illness or cognitive impairment. Depending on the policy you chose, long term care insurance offers you the opportunity to help maximize your independence and functioning when you cannot be fully independent. Long term care needs can place a great burden on you and your family-emotionally and financially-if you are not prepared.

Long term care insurance can help pay for nursing home care, assisted living, and even home health care that Medicare may not cover. Most long term care insurance is designed to be flexible, allowing you to control the costs in relation to the benefits you want to receive. It can help protect your assets and your estate, and may give you more control over your future care. It can also offer you the confidence that you will not overburden your loved ones and a solution to your long term care needs.

Optimally, you should consider long term care insurance while you are still healthy and able to qualify for underwriting approval by the insurer.