We believe in taking a conservative, prudent approach to investing, and earning attractive, risk-adjusted returns over the long term.
For all of our clients, we begin by identifying the client's risk tolerance, goals, and objectives. We then translate this information into an investment plan according to the following principles that have been academically proven to increase an investor’s success:
Diversification is Key…Having a broadly diversified investment portfolio greatly increases your chances for success by reducing market risk while capturing market return. When combined with proper asset allocation, diversification is a powerful tool for managing risk and reward.
The Right Mix is Critical …Asset allocation is the most important decision an investor can make; academic studies have repeatedly shown that a properly allocated portfolio is the single largest factor in determining the level of future returns.
Invest Efficiently…Year after year, the majority of actively managed funds underperform their benchmark, while incurring higher fees. Over time, owning index funds provides improved returns, increased tax efficiency and lower costs over their actively managed peers.
Market Timing is Risky…A successful timing strategy requires three correct decisions: when to get in the market, when to get out, and when to get back in again. Market timers move money in and out of different investments in an attempt to profit from short-term cyclical events. This is a dangerous practice. Decades of empirical research by hundreds of academics and economists have yet to find conclusive evidence that market timing works.
Costs Matter…An investor’s earnings comprise the market rate of return less fees and expenses. By reducing costs, an investor captures more of the market return. Compounded over time, that can mean hundreds or even thousands of dollars saved. Those savings stay in the portfolio, and continue to work for you.