Investment Management

We believe that a disciplined approach, diversifying to different asset classes, rebalancing, and low cost investments are the four pillars of successful investment management.


DIVERSIFICATION


It is our job to build a diversified portfolio to preserve and growth wealth over time. To accomplish this we own many low cost asset classes. By having the correct mix of asset classes we match the risk of the portfolio to the desired level of risk acceptable to our client.

 

REBALANCING

Many investors buy or sell based on their emotions, news, or rumors which often cause them to buy high and sell low. Rebalancing is one of the ways we stay disciplined. In all of our clients' portfolios we have targeted allocations. If our 15% allocation to a particular investment does well and becomes 20%, we rebalance. (this causes us to sell this asset at a higher price) Conversely, if our 15% allocation does poorly and becomes 10%, we rebalance. (this causes us to buy this asset at a lower price)

The goal of a rebalancing strategy is to minimize risk, rather than maximize return. An investor wishing to maximize returns, with no concern for the inherent risks, should allocate his or her portfolio to 100% equities to best capitalize on the equity returns.

LOW COST INVESTMENTS

The portfolios we manage take advantage of low cost investments to gain exposure to certain asset classes based on client risk. Based on a recent Morningstar study on mutual fund fees, the report explains the average mutual fund fee is 1.25% for all funds. If we look at an asset weighted approach the average expense is .67%. Investors are getting the message about low cost funds and allocating their dollars towards lower cost!

Currently the discretionary portfolios we manage for our clients have an expense ratio that ranges from .12% - .43% *

How much is your portfolio costing you?

*as of 4/27/2015. Subject to change if we add or remove any positions.

DISCIPLINED APPROACH

What does a disciplined approach mean? It means we have done this many times before and we have a process. We have a process for Investment Management, a process for financial planning, we expect the unexpected. It means when markets start misbehaving and declining as they do occasionally, we act as your behavioral coach to help you take advantage of lower prices or just stick to your long term plan. On the flip side if markets get euphoric again you may need someone to remind you, by taking excess risk you are putting your long term plans at risk

It means we always consider your goals before we make any recommendations because that is what matters