“I want my financial advisor to provide solid investment advice, absolute objectivity and always act in my best interests.”
Our advice is clear, straight forward and strives to be free of the conflicts of interest that are frequently present in traditional investment advisory relationships. As Investment Advisers, we are fiduciaries. This means we are required by law to put your interests ahead of our own at all times by providing advice and recommending investments that we view as being the best for you. Unlike brokers employed by or affiliated with financial institutions, we are truly independent and we work solely on your behalf and our duty of loyalty is with you only. This enables us to provide truly objective advice and always act in your best interest.
We do not work on commissions of any kind. Our professional fee-only compensation structure aligns our interest with yours and promotes a long-term relationship based on openness and honesty.
A carefully designed investment strategy fitted specifically to your needs and incorporating wealth management “best practices” has the potential to add significant value over the years beyond what the typical investor might experience on their own.
Whether you are currently receiving advice or not, we believe we can add value compared to the average investor experience by applying the following tactics:
We want you to be in the best position possible to meet your long-term financial goals. How your investment assets are allocated across stocks, bonds and cash is the most important determinant of long-term returns and risk of a broadly diversified portfolio and one of the most important decisions you will make. A sound investment plan begins with an Investment Policy Statement which outlines the financial objectives for the portfolio and asset allocation. Unfortunately, many ignore this critical effort, in part, because it can be very time-consuming, detail oriented and tedious. We’ll help you complete this critical step and create a sound investment plan which matches your investment objectives and risk tolerance so you will be well-positioned to meet your financial goals.
Every dollar paid for expense ratios, trading costs and taxes is a dollar less of potential return and a dollar less for achieving your goals. Keeping your investment costs low is a part of our process. We have access to lower-cost investment options which are typically not available or accessible to most retail investors. When you pay less, you keep more.
Given the importance of selecting the right investment strategy (asset allocation), it’s also vital to maintain that allocation over time. Helping you stay committed to your asset allocation strategy increases the probability of meeting your goals, but the effort of rebalancing is often an emotional challenge for many investors. Reallocating assets from better-performing asset classes to the worse-performing ones feels counterintuitive. But rebalancing keeps your investment portfolio in-line with your long-term asset allocation strategy. The primary goal of a rebalancing strategy is to minimize risk. Without rebalancing, your investment strategy will “drift” with the markets and become more vulnerable to stock-market corrections and thus at risk of larger losses which exceed your risk tolerance. We can provide the discipline to rebalance when rebalancing is needed most.
The hardest part of investing is sticking to your strategy in the best and worst of times. Discarding a planned investment strategy can be costly and can result in significant wealth destruction. Research has shown that some of the most significant factors are behavioral, such as the allure of market-timing and the temptation to chase performance resulting in investors receiving lower returns than the funds they invest in. One of the most significant things we can do is help you maintain a long-term perspective and a disciplined approach during good times and bad.
Asset location, the specific allocation of investment options between taxable and tax-advantaged accounts, can add significant value each year which compounds over time and increases the probability of achieving your goals. Yet it still remains one of the most underutilized portfolio management tactics. An efficient asset location strategy can generate increased net returns. We use sophisticated financial management systems to control asset location preferences and portfolio taxation for each client. When you pay less, you keep more.
During retirement, you will face important decisions about how to create income from your investment assets to meet your needs. Many people hold multiple types of accounts including taxable, tax-deferred (such as a traditional IRA, 401k, 403b or annuities) and tax-free (Roth IRA or 401k) accounts. The tax treatment on each type of these accounts is different. Making the wrong decision about how to create income from these varied accounts can decrease the longevity of your portfolio and have a negative impact on your wealth.
We will help you create a spending strategy which adds value without additional risk by minimizing taxes over the course of your retirement, thereby increasing your wealth and the longevity of your portfolio.
Total-Return vs. Income Investing
In the past, retirees holding a diversified portfolio of stocks and bonds could have lived off of the income generated by their portfolio. In today’s low interest rate environment that is no longer the case. And, attempts to allocate a portfolio toward higher interest rates and higher dividend yields subjects the inexperienced investor to higher principal value risks.
We can help you make a better choice with the potential advantages of less risk, better tax efficiency and longer portfolio lifespan using an approach that combines income plus capital appreciation (total-return) to meet your income needs and other financial goals. Let us show you how.