Disciplined Investing Process
The importance of and investment process is to help you identify your attitudes toward investment risk, asset allocation and diversification, trading, investment costs, and other issues that define what is important to you as an investor.
Our Approach to Investing
- Start with a plan. Select a stock/bond allocation based on your goals and time horizon.
- Have separate cash reserves.
- Know your risk tolerance. Be prepared.
- Asset allocation is a time tested strategy. Employ a broad range of asset classes.
- Disregard market timing and individual stock selection.
- Overweight smaller stocks and value stocks.
- Minimize investment costs.
- Minimize taxes on investment gains.
Successful investing fuels your financial security. We focus on time-tested investment principles and avoid short-term market timing. We believe that a strategic mix of investments (bonds, U.S. Stocks, foreign stocks, real estate, commodities, etc.) will influence your investment returns more than picking the right stock or mutual fund. Following the herd is not our style. We believe that investing in less popular “value” stocks provides greater rewards over time.
We also believe it is critical to understand and minimize your total investment costs. After all, it’s not what you make, it’s what you keep! With our Prime Portfolio Services and Preferred Asset Management Programs, we only use no-load or load-waived funds. We employ index funds and exchange-traded funds as core positions to minimize costs. All applicable fees are clearly disclosed to you in writing prior to investing.
Ultimately, investing is all about your net after-tax returns. Some investments provide attractive pre-tax returns, but are not tax efficient in the long run. We utilize strategies such as tax-deferred accounts, Roth contributions and conversions, municipal bonds, tax-loss harvesting, low-turnover funds, and charitable gifting as appropriate for your particular situation.
Other important aspects of our portfolio management process include:
- Daily pricing of your portfolio and its component investments
- Rebalancing as needed to maintain proper allocations
- Review of your portfolio for adherence to your investment objectives
- Quarterly performance reports
Investments in securities do not offer a fixed rate of return. Principal, yield and/or share price will fluctuate with changes in market conditions and, when sold or redeemed, you may receive more or less than originally invested. No system or financial planning strategy can guarantee future results.