Our investment philosophy is deliberately simple:
- We think long term. This means that we don’t put all our eggs in one basket and don’t make promises we can’t keep. We are patient and know that it takes time to move the needle.
- We seek to minimize costs, including taxes. It’s easy to miss the internal expenses and fees of some investments, especially when they don’t always show up on your statement. Excessive trading can also result in unnecessary transaction fees and tax implications. These costs may seem small as a percentage but have a dramatic effect on your performance over time.
- We don’t get too “fancy”. There are complex trading strategies out there that are sometimes successful. But that’s not what we do. We’d rather focus on a few “good” long-term strategies so we can spend our time with clients.
What does this mean for your investment portfolio?
If you are just getting started when it comes to investing or have a “clean slate” lump sum of cash that you’ve decided to invest, we are likely to recommend a low-cost, diversified portfolio of exchange-traded funds. The allocation of funds in the portfolio will depend on your financial goals and tolerance for risk.
If you have an existing portfolio of individual stocks or bonds, we will “work” with what you have. This means we carefully assess the outlook of each of your holdings and determine the tax implications (capital gains/losses or estate planning considerations) of any proposed transactions.
In either case, we will:
- Meet with you to define your investment goals and tolerance for risk, which are part of your Investment Policy Statement (IPS).
- Monitor performance of recommended investments over time and make replacements as needed.
- Monitor performance of your portfolio over time and rebalance the portfolio as needed, usually 1-2 times per year.
Interested in a second opinion on your investment portfolio?
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