Our Investment Philosophy
Disciplined Investment Management
We believe successful investing requires discipline, patience, and a well-defined plan. We guide you through investment decisions using a process that focuses on your ultimate personal and financial goals, as well as your risk tolerance. Many investors see investing success as beating a certain benchmark or index, but in doing so lose sight of their investments’ purpose and may lead to unnecessary risks.
Managing the Complete Financial Picture
With the majority of our clients, we are responsible for managing their complete financial picture, not simply the investments in one of their accounts. For this reason, we are able to build an investment portfolio that takes into account their unique tax situation and overall planning goals.
Focusing on What We Can Control
Investing in a global economy makes predicting movements in financial markets very difficult. Attempting to time the markets and jump in and out of various investments is a dangerous game that will likely stall wealth creation over time. In light of this, we help you focus on the factors in investing that are within your control. These include:
- Diversification and Risk – Through our planning process, we help you determine how much risk is needed to accomplish your ultimate personal and financial goals. From here, we build a diversified investment portfolio that helps reduce risk by spreading assets among several different types of investments that move independently of each other.
- Reducing Costs and Taxes – It is important to consider all of the costs and taxes associated with each investment in your portfolio. We scrutinize each investment that we select for clients to make sure that the cost is justified. Our clients’ portfolios include both active and low-cost passive strategies. In addition, we focus on placing each investment in the appropriate account (taxable, tax deferred, or tax free) given its tax nature. This asset location decision can help you keep more of your investments’ return and reduce the amount you pay in taxes.
- Behavior – Investing is an emotionally challenging process that requires discipline and self-control. It is easy to get caught up in the emotions of fear and greed and make quick, rash decisions that come from your gut. These gut instincts are helpful for the vast majority of decisions in our everyday lives, but when it comes to investing, they oftentimes are our worst enemy. We help you stay focused on your long term goals and avoid the “noise” created by our news media driven world.
Investing involves risk including the possible loss of principal. Diversification does not guarantee profit or protect against loss in declining markets. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.