Our Investment Philosophy

Investing Based on a Financial Plan - Age, investment horizon, risk tolerance, etc. are all important factors in selecting appropriate investment vehicles. It is not only unethical, but also against the rules of the FINRA to recommend an investment without first obtaining pertinent investor information.

Diversification - Although Diversification will not guarantee protection against losses, it has been proven to dampen the effects of volatility on a portfolio. It also makes good sense.

Asset Allocation 1 - The science of diversification is called Asset Allocation. Based on Nobel Prize 2 winning research it has proven over time to help find the proper balance between risk and return.

Use of Specialist Third Party Money Managers - No one person or group can specialize in every area of investing therefore we employ multiple money managers to help in managing our client's money. We also employ a "Manager of Managers" approach for optimum oversight and monitoring of a client's Investment Portfolio.

NO Market Timing - Studies 3 have proven that success is determined more by time IN the market and the existence of an Asset Allocation Policy. NOBODY knows on any consistent basis when is the best time to get in or out of the stock or bond markets.

Our philosophies can be implemented through a variety of investment vehicles. All of the investment plans we use incorporate these philosophies. The investment vehicles that may be right for you can be determined through the Financial Planning Process.

  1. Asset allocation enables an investor to reduce the overall volatility of the portfolio. However, using an asset allocation methodology does not guarantee greater or more consistent returns nor assures against market loss.
  2. Harry Markowitz received the Nobel Prize for Economics in 1990 for his article entitled “Portfolio Selection” written in 1952.
  3. Gary P. Brinson, L. Randolph Hood, and Gilbert L. Beebower, “Determinants of Portfolio Performance”, Financial Analysts Journal, Vol. 51, No. 1, January-February, 1995, p. 135