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.
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.
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:
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.
Successful investment management starts with discipline. It is the cornerstone of your financial future. At Stanhouse Financial Planning and Management, LLC, we manage your assets as if they were our own. We work to achieve our clients goals through appropriate growth and income, but also have a finite focus on risk and all of the competing forces that can impact a portfolio over time. Through extensive research, tactical allocation, and focused risk modeling and management, our portfolios help clients stick with their plan and achieve their long-term goals.