Our Investment Management service is provided as part of our comprehensive Wealth Management Process.
We design your investment portfolio tailored to your specific financial needs, time horizon, emotional tolerance for risk, financial capacity to endure risk, and tax situation.
Your portfolio is designed and regularly monitored with the current economic environment in mind. We consider inflation, deflation, market valuations, and investment styles as we construct your portfolio as well as make ongoing rebalancing decisions.
The following tenets are key to our investment approach:
Methodology – We follow a disciplined investment methodology that is based on decades of academic research. This approach has a proven track record of long-term success.
Asset Allocation – Asset Allocation is one of the most important investment decisions as it determines most of the risk and return one will experience. Research has shown that over the long run more than 90% of the variation in return is explained by your ratio of stocks to bonds in your portfolio.
Capital Preservation – You should take on only enough risk to meet your financial goals. Preservation of capital becomes increasingly important as you approach retirement because your time horizon to recoup losses diminishes.
Costs Matter – We predominantly use low cost index mutual funds and ETFs. Lower costs keep a larger portion of investment returns in your pocket.
Global Diversification – We are in a global economy and your portfolio should reflect this. You can read more about why we diversify in our article “Two Key Benefits of Portfolio Diversification.”
Minimize Taxes – We utilize tax advantaged investment vehicles such as index mutual funds and ETFs for the taxable portion of your portfolio. The less return you lose to taxes, the more you will keep to meet your goals. We also seek opportunities to tax loss harvest on an ongoing basis.
Quarterly Review – We thoroughly review your portfolio each quarter relative to your recommended strategic asset allocation.
We are large proponents of low cost, tax efficient, broadly diversified, index oriented mutual funds and ETFs. Two of the investment management companies we rely on most when designing and managing our client portfolios are Dimensional Fund Advisors and The Vanguard Group. They both have outstanding reputations, a track record of numerous decades of providing consistent asset class returns, low investment costs, an investment process that is evidenced based and academic in nature, and are greatly supportive of the fee-only financial advisor community and their clients.
You can read more about each firm at their respective websites by clicking on their logos below: