Investment Philosophy and Strategy
We will help you make appropriate investment decisions. Our overall objective is to create broadly diversified portfolios that reflect current and projected economic realities.
We believe the most important aspect of investing is asset allocation. The asset classes in which you invest, under any given market and economic conditions, will ultimately determine your return, diversification, risk-reward profile and psychological well-being. Note: asset allocation does not guarantee a profit or protect against a loss.
Through our alliance with LPL Financial, we are backed by one of the largest in-house research teams of any independent broker/dealer. As the nation's leading independent brokerage firm*, LPL Financial has no proprietary products, investment banking business, or any other conflicts that can get in the way of providing independent, objective and unbiased investment research to its advisors*.
Emotions such as hope and fear often lead investors toward irrational decisions which create pricing inefficiencies in the market. The herd often makes decisions based on emotion, buying high at outrageous prices and selling low at rock-bottom prices. We do not get caught up in overly optimistic growth projections or dire doom and gloom projections. We remain objective and base our recommendations on sound investment research.
PASSIVE VERSUS ACTIVE
We believe markets are not efficient and that it is possible for a skilled manager to outperform the market over time. While past performance is no indicator of future results, we believe there is an inherent advantage in selecting experienced portfolio managers with track records of sound performance.
We utilize professional money managers through what are known as separately managed accounts and other so-called advisory accounts to invest our clients’ assets. LPL Financial’s broad research encompasses mutual funds, separate accounts, variable annuities, REITs, ETFs, fixed income, alternative investments and other sophisticated investment programs – while focusing singularly on the individual investor.
We have incorporated modern portfolio theory into our practice, which is the theory that individual investments should be analyzed not on their own risk, but on the additional risk they add to an entire portfolio. Because there is a certain amount of risk in all investments, we educate our clients so that they understand the risk-return trade-offs we make on their behalf.
ON-GOING MANAGEMENT AND REBALANCING
Portfolio rebalancing is a critical component of the strategic asset allocation process and essential to the long-term success of your portfolio. Rebalancing is designed to ensure that the allocation of your assets remains in line with your stated investment objectives. Because the relative performance of various asset classes will vary, portfolios that are not reviewed on a regular basis tend to drift from their target allocations. A portfolio that is not regularly rebalanced could assume a risk/reward profile that is not consistent with your objectives. Your portfolio will be reviewed on a regular basis, and adjusted when needed, to help maintain the optimal allocation of your investments.
We are long-term investors. Our clients share our vision that successful investing is a function of patience, not hasty judgment, and that investment choices must be permitted time to reach their potential. In our role as wealth advisors, we do not try to time the direction of the market by making short-term bets. But, we do believe that well-informed tactical asset allocation decisions can help minimize downside losses and enhance up-side gains.
The purchasing power of a portfolio can be greatly diminished if its underlying investments do not provide an appropriate real return. When we construct a portfolio, we try to strike a balance between future growth and current income.
We charge a fee based on a percentage of our client's assets under management with LPL Financial. This puts our financial success in line with our client's financial success – as they prosper we prosper.
*Based on total revenues, as reported in Financial Planning magazine, June 1996-2015.