Investment Philosophy

Diversification among asset classes and long term investing
No one can predict which asset class will perform best in any one year. This is why we believe each client should hold at least some of each class. In addition, we believe success is more probable if the client takes a long-term focus. Market timing does not work. By long term we mean developing a portfolio based on goals, risk, time horizon, and loss threshold and sticking with that portfolio until one of the above factors changes. The keys to investing are faith, patience and discipline.

Basing portfolios on an annual loss threshold
Most investment advisors and brokers will develop a portfolio to maximize gains. While every client should expect competitive returns, focusing solely on the upside produces a portfolio loaded with undue risk. This extra risk wreaks havoc on your returns and your peace of mind in a down market. Most clients aren’t risk averse, but loss averse. This means that clients aren’t afraid to take chances; they are afraid to lose money. This is why we develop portfolios that adequately consider the downside as well as the upside.

Avoiding annuities except in rare circumstances
We don’t believe that annuities are valuable as investment vehicles. Many in the financial industry like annuities because they pay a large upfront commission. We have found that clients are better served with tax efficient index funds and fixed income vehicles because the total accumulation will be higher after factoring in fees and taxes. Plus, annuities don’t receive a “stepped-up” cost basis upon death of the annuitant , which is a significant estate planning advantage.