Our Investment Philosophy


Financial Planning

"It requires a great deal of boldness and a great deal of caution to make a great fortune, and when you have got it, it requires ten times as much to keep it."
    - Mayer Rothschild (1743-1812)

Because a majority of our clients are at or near retirement, our investment philosophy tends to be more moderate and conservative than many financial advisors who specialize solely in the accumulation phase of a person's financial life. We seek to develop portfolios that align well with our clients' risk tolerance while still meeting their objectives for growth and income.

Our clients have spent many years creating their wealth and our objective is to help them avoid unnecessary risks, taxes, and liabilities, and to assist them and their loved ones through their retirement years.

Some of the systems and principles we utilize that help us implement our philosophy include:

Asset Class Diversification - We believe that the old adage, "don't put all of your eggs in one basket," is still wise counsel. Asset class diversification is the process of utilizing investments that have different characteristics and that can respond differently from each other during various market cycles. Some of the most commonly used asset classes include: common stocks, preferred stocks, bonds, cash, real estate, alternatives, and commodities. Asset class diversification can lower the overall risk of a portfolio, and studies have shown that the asset allocation of a portfolio is the single largest determinant of portfolio risk and returns.

Diversification of Management Style - In addition to asset class diversification, we believe in having different styles of investment management. We don't believe that any one style of management is going to always perform the best in all economic and market conditions. Some management styles do better when markets are doing well, some perform better in more volatile times and some do better than others in down market times. We help our clients to select managers that have different styles, strategies, and areas of expertise to provide further diversification to their portfolios. Some of the different styles that can be utilized are active strategies, passive strategies, tactical strategies, and alternative strategies.

Rebalancing - Periodically taking the profits from asset classes that have done well and distributing them to the classes that have not, can potentially reduce volatility (risk) and increase your overall return. This is a disciplined approach to buying low and selling high.

Goals-Based Investing - Goals-based investing allows our clients to set predetermined goals and match a sub-portfolio that is consistent with the time frame and risk tolerance needed to reach those goals. Goals-based reporting allows our clients to see how their investment is tracking against their goal.

Tax-Managed Investing - An investment advisory company can be used to oversee all of the managers of a client's taxable money, coordinating the investment decisions with the tax ramifications of those decisions. This is done along with the guidance of your CPA or tax preparer. Tax-managed investing also involves selecting funds and managers who use techniques like tax-lot harvesting and who try to avoid creating unnecessary capital gains and taxable phantom income.

Institutional Wealth Management vs. Retail Investing - We utilize many of the systems and asset classes that have helped institutional investors achieve better results than the average retail investor. Because of relationships we have with various institutions, our clients have access to investments and strategies that are not usually available to the general public without meeting very high minimums.

*Source: Brinson, Singer and Beebower (1991)