Investment Management and Advisement

• Growth of a Dollar
• US Market Intra-year Gains and Declines vs. Calendar Year Returns

• Growth of a Dollar

  

• US Market Intra-year Gains and Declines vs. Calendar Year Returns

  

Investment Philosophy

In a nutshell, we believe in risk-appropriate diversified portfolios of low-cost mutual funds, index funds or exchange traded funds(ETFs) work out best for most people in the long-run. We believe in long-term strategy over short-term tactics.

Allocation

We believe the main factor in determining an investor’s rate of return is the equity level (the aggressiveness) of their portfolio. We use various methods to determine an appropriate high-level equity allocation for our client’s individual circumstances.

Fundamentals

We believe there are two fundamental aspects to investing: the emotional/behavioral aspect and the methodology aspect.

Behavioral finance is a huge topic and a significant factor both on the individual investors level and in the market as a whole. We try to be an analytical, calm, and compassionate partner to our clients as we navigate the market ups and downs.

Investing methodology are the elements most people think of when talking about investing. We believe in the following fundamental principles when it comes to designing an investment portfolio and making specific recommendations:

• We believe that a diversified, well-balanced portfolio, combined with long-term buy-and-hold strategies, affordability and patience, increases the likelihood that one will achieve his or her long-term financial objectives.
• The appropriate allocation of investment assets for your goals and risk tolerance is the most important component in developing an investment portfolio.
• In the equity asset class, we believe that mutual funds, index funds and exchange traded funds are the most appropriate vehicles for the typical investor. All other things being equal, we believe a fund with less overhead (expense) will perform better over time than a fund with high overhead. We generally do not recommend individual stocks.
• Taxes can take a bite out of investor returns, as such, our recommendations are made from a tax-conscious perspective.
• Difference of opinion makes a market. Investment and economic “experts” provided with the same information often come to different conclusions. We do not suggest that we, or that any of the mutual fund managers that we may recommend, can predict the future. We do believe, however, that studying the historic trends and relationships of investment classes and the philosophies can provide valuable insight.

Recommendations

As fiduciaries for our clients, we strive to use the most appropriate investment vehicles to meet a client’s objectives, while being very conscious of total expenses and risk exposure. The design of the portfolio takes into account the client’s financial objectives, tolerance for risk, needs for current income or liquidity, and special considerations such as income or estate taxes. Tax implications are always taken into consideration.

Different client circumstances will generate different recommendations.

In our investment recommendations, we often utilize some Vanguard funds. For accounts we manage we often use some Dimensional funds. Dimensional is a highly regarded firm specializing in low-cost passive style funds. They add some academic rigor to the passive approach and their mutual funds are only accessible via approved advisors.