Clients can be inundated with investment vehicles and strategies. Our mission is to remove the mystery from the investing through regular communication and education. We believe that a key component to successful investing is to have realistic goals and to maintain a long term outlook.
The markets are dynamic, so we prefer to communicate regularly with our clients. We encourage clients to call us anytime with questions or concerns. We work with each client to develop a customized, diversified portfolio.
We do not believe in active portfolio management to ‘beat the market’ nor do we believe it is possible for anyone to consistently ‘time’ the markets. Instead, we determine which asset classes to include in a diversified portfolio and choose high quality investments that truly represent the entire class. Our preferred investments are low-cost, low-turnover no-load mutual funds that represent an asset class (e.g., U.S. large cap, U.S. fixed income). This investment philosophy, known as Modern Portfolio Theory, is widely and effectively used by institutional investors.
Taxes are, understandably, an important consideration for every high net-worth investor. We carefully consider the tax efficiency of investments to reduce taxes. We also closely track opportunities to mitigate a client’s tax liability over the long-term.
To create a diversified portfolio, we make a series of decisions:
(1) The most important asset allocation decision an investor can make is how much to allot to equity (stocks) and fixed income (bonds) respectively.
(2) U.S. companies make up just 45% of the world’s equity markets. Therefore, an investor needs to decide how much of his or her portfolio to allocate to international equities and fixed income.
(3) We further diversify across smaller subcategories such as small cap, REITs (commercial real estate), and value.
We continually research to justify existing asset classes and to find new ones.