What We Believe
Values – We believe living a great and rewarding life requires fulfillment of the most important things in our lives – our values! Financial security is one of the foundations needed to allow the freedom to fulfill these values.
Life Worth vs Net Worth – We believe our Life Worth, the building of memories and experiences, is more important than our Net Worth. However, a secure Net Worth allows us to build a fulfilling Life Worth.
A plan – We believe a sound and realistic financial plan is the foundation upon which we can build a secure and wonderful future reality. A fulfilling life includes many experiences and transitions and our financial plans must support and adapt to each transition.
Diversification of Income – We believe financial security results from true diversification of income. This must include income from at least three of the following sources; pensions, personal business, real estate, cash, securities, and insurance.
Conservative Growth – We believe over a lifetime, a conservative investment approach based primarily on buying a diversified portfolio of undervalued investment funds and holding only until they have reached full value will provide the growth and preservation of capital our clients need and deserve.
Independence – We believe an independent opinion (one not tied to products) is required for an unbiased recommendation. Having our client’s best interest at heart is not only the right thing to do, it makes good business sense.
Full Disclosure – We believe in full disclosure of fees and compensation and transparency of actions. Our clients trust must be earned continually.
Our Investment Philosophy
We must understand you – We must understand and consider all aspects of your situation before recommending a strategy or products. Specifically your values, goals, timeframe, needs, and comfort level with volatility (risk).
We follow a disciplined asset allocation strategy based on your goals and risk tolerance – Although it may be obvious, appropriate asset allocation and security selection is the single most important task in investing – for both return and volatility. The trade off for a larger potential return will always be greater volatility in the investment portfolio. Following a disciplined strategic asset allocation approach based on your investment objectives and risk profile has the best opportunity of providing the maximum return with minimum volatility.
We don’t time markets – Wealth is more often and certainly accumulated through long term prudent investment than short term speculation. No one has been able to time markets both consistently and successfully, so we don’t try.
We manage your real return – The real return on investments is what you keep and is the only return that is of importance. Taxation, inflation and cost of investing all impact your real return and must be managed and minimized appropriately.
Capital preservation is a priority over growth – This is serious money and we cannot afford to lose it. We diversify by asset type, class, investment style, capitalization and geography.
We focus on investor performance along with investment performance – Your performance or success is dependent on you reaching your goals – Focusing on your goals ensures we don’t miss the forest for the trees.
We require our client’s signature and approval on all transactions as this is not a discretionary trading account.
Investment Monitoring, Reporting and Communications
We monitor the investment companies and the performance of their funds on a regular basis. If the performance of any individual investment lags their respective benchmarks for an appreciable time, a call, or note will occur informing you of a recommended course of action, and will require your approval and signature. You will have access to market values updated daily on-line. However, as this strategy is long term in nature, daily monitoring is not recommended and can impact the portfolio negatively if emotions are allowed to dictate decisions.
The investment companies will send you confirmations describing any changes made to the portfolio. They also send statements detailing market values and transactions in specific investments at pre-set times. You have direct access to your investments where they are held. At your annual review a detailed summary and analysis of performance takes place. You will receive:
- A customized portfolio summary tracking your net invested, market value, your cumulative gain/loss and your annualized Rate of Return as a percentage.
- Your asset allocation with recommended re-balancing
- Performance of your investments based on your goals
Outside of regular meetings, we call a minimum of two to six times a year, or if any issue needs our immediate attention, please contact us. Our office also sends out monthly email newsletters discussing current trends, the economy, and planning strategies.