Four Pillars of Investing

ASSET ALLOCATION

The first pillar is asset allocation.  We seek to determine the proper asset allocation for our client's unique circumstances, including risk tolerance, time horizon, and objectives. We believe that the appropriate asset allocation is the key to maximizing a client's potential return for their given level of risk on their investments over the long-run. 

 DIVERSIFICATION

The second pillar of our investment philosophy is diversification.  By diversifying client assets, we attempt to reduce portfolio volatility while keeping our clients on track to achieve their goals. We believe that clients can achieve diversification without using illiquid securities, such as private placements, non-publicly traded securities, and other higher-cost/higher-risk securities. We find that the more complex and expensive investment vehicles are often not appropriate for individual investors. 

DISCIPLINE

The third pillar of investment philosophy is discipline. Investing discipline through bull and bear markets is critical to clients achieving their long-term goals. It is easy to get over-allocated to equities when times are good and subsequently lose those gains when the market corrects. Re-balancing the account to its original allocation is crucial to being disciplined as an investor.

CONTROLLING THE COST

The final pillar of our investment philosophy is controlling the cost of investing.  We avoid high-priced mutual funds. We also avoid thinly traded securities as a large bid-ask spread could increase the cost of investing over time. Our portfolios are built primarily with low-cost Exchange Traded Funds, stocks, and bonds. We take a "Client's First, Financial Products Last" approach.