Is your investment strategy aligned with your time horizon, risk profile, and financial goals?
We will perform an analysis of your current portfolio and take a look at what is driving the returns in your portfolio as well as what may be holding you back. As the evidence shows, we find that investors are often paying unnecessary expenses that can be detrimental to your portfolio over time.
We will make sure you understand the key aspects of your portfolio and develop a plan that allows us to handle the greater complexities such as rebalancing and asset location.
Investing can sound intimidating, but we can help by focusing on the things within our control and helping you understand the plan.
Our portfolios are built with our clients’ individual goals and needs in mind. We consider your time horizon and comfort with risk before recommending a portfolio, so that we can develop a long-lasting plan that allows you to stay the course without compromising your short-term needs.
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STEPS TO BUILDING AN EFFECTIVE INVESTMENT STRATEGY
SET GOALS & MAP EXPECTATIONS
ASSET LOCATION &
STRATEGIC ASSET ALLOCATION
01 It is important to define why you are investing in the first place. To build out a plan, you must know what you are hoping to achieve. Once this is determined, we can design a strategy based on your time horizon, goals, and ability to manage risk.
02 There are many uncertainties when it comes to investing, but the one thing you can control is the costs you pay. Managing expenses can help stack the odds in your favor.
03 Taxes can be one of the largest expenses in an investment portfolio. This is why asset location is an essential component of our investment strategy.
We hold assets with higher expected returns in tax-advantaged accounts (Roth IRAs) and assets that generate taxable income in tax-deferred accounts (Traditional IRAs). Additionally, we take municipal bonds into consideration for taxable accounts after comparing expected yields with potential tax savings.
04 Studies have found that global diversification can lead to reduced volatility and more consistent returns when one or more countries experience a period of turmoil.
From 1999-2018, the U.S. has never been the top performing country in terms of stock market performance for a single year. This demonstrates the importance of having a portfolio with exposure to stocks from countries all around the world.
05 If we look back almost 100 years, we can see that some asset classes have largely outperformed their counterparts. Our portfolios aim to enhance expected returns by providing increased exposure to these asset classes for those with longer time horizons while maintaining a broadly diversified portfolio.
06 Your portfolio should be diversified among different asset classes. Over time, your portfolio will likely drift from its original allocation which is why we rebalance on a regular basis.
Rebalancing is natural buy-low, sell-high mechanism that keeps your exposure to risk at an appropriate level.
07 The final and perhaps most challenging step is to stay the course through the ups and downs of the market. Develop a well-designed plan and stick to it.