A sound investment strategy is one that helps you achieve your goals while taking on as little risk as necessary. We do not believe in risk tolerance questionnaires because we cannot realistically determine your investment profile from 7-10 questions. Moreover, we know you will likely have different answers depending on favorable or unfavorable markets. We only make recommendations after taking into account your entire financial life, utilize our tools to forecast your plan, and arrive at your desired probability for success.
Our Investment Philosophy
- Independence - We are completely independent. Our firm is not limited to a menu of investment options nor do we manufacture investment products. We are also independent with our choice of custodian (i.e. firm that holds your assets). We are only compensated by our clients and never receive commissions from third-parties.
- Transparency - We are interested in partnering with you. You will always know how you are invested, what you are paying for, and how you are doing.
- Core-Satellite - A core satellite approach involves investing a large portion (the core) of your portfolio in investment strategies consistent with market returns and a smaller portion (the satellite) in areas that we believe can outperform.
- Do Not Attempt to Time Markets- Market timing is a strategy of making buy or sell decisions by attempting to predict future market price movements. It's been academically proven many times over this strategy does not work. For this strategy to work you would have to be right twice (i.e. get out and in at the right time).
- Rebalance - It is imperative to maintain a portfolio consistent with your financial plan. Markets will inevitably appreciate or decline. When this happens, it is important to reallocate your portfolio to maintain your investment strategy. We rebalance our clients portfolios on a quarterly basis.
- Expense Management - We believe in paying for value. All of our solutions are institutionally priced without sales loads (i.e. commissions).
Our Investment Management Process
- Asset Allocation - Your plan will determine your investment strategy (also called asset allocation). Asset allocation is the process of selecting a mix of asset classes that closely matches an investor’s financial profile in terms of their investment preferences and tolerance for risk. It is based on the premise that different asset classes have varying cycles of performance, and that by investing in multiple classes, the overall investment returns will be more stable and less susceptible to adverse movements in any one asset class.
- Portfolio Design - With a targeted asset allocation we can take the next step in determining your investment personality. This is an important step in the process as it involves partnering with you to build a custom portfolio consistent with your investment personality. Our clients have different levels of wealth, investment experience, outlook, and interest in various strategies. We match your asset allocation with your investment personality to include appropriate strategies such as managed volatility, alternative investments, low cost solutions, alpha (return over benchmark) strategies, and tax managed investments.
- Investment Manager Selection - Our independent nature is a huge benefit in that we can hire virtually anyone among a broad investment universe. The managers we hire must adhere to their mandate (avoid style drift), have a cohesive management team, produce consistent returns, manage risk, and charge a fair fee.
- Portfolio Construction - This is often referred to as the science in our process. We utilize our experience, education, and tools to build a custom portfolio of uncorrelated solutions that optimize your asset allocation and investment personality.
- Tax Management - Taxes can take away a good portion of your return and significantly reduce your chances of achieving your goals. To that end, we address tax management at all levels of the investment process.
- Monitor & Review - We offer a robust reporting tool so you know how you are invested and how you are doing at all times. We believe in a household investment strategy, therefore our capabilities include functionality to see the performance of all your assets in one place.
About the only certainty when it comes to the financial markets is that they will change and so will your financial situation. As you move through life’s stages, it's imperative to have an objective professional partner with you to maximize your resources.