Helping Families and Individuals Honor the Important Promises They Have Made to their Loved Ones.
By Minimizing Taxes, Maximizing After-Tax Wealth, and Enabling Better Long-Term Outcomes for Clients
Our Philosophy for Disciplined, Long-Term Investors
Long-term investing is a journey filled with perpetual hurdles, cognitive mistakes, nuances, hard analysis and constant change. It’s both a science and an art, with a rich history of brilliant ideas that have shaped the past and will influence the future. When it comes to investing, knowing what you believe helps to illuminate the path before you more clearly and supports the essential conviction that guides your ability to meet long-term investment goals. Before beginning any journey; before committing any of your money, wealth or time; before taking action that will change your life, know what you believe. A solid foundation will help you possess the clarity you need to persevere in your journey, your investment plan and your promises.
Our Investment Philosophy is shaped by 11 well-defined beliefs that guide our process, determine our actions, influence our investment management decisions, and serve as the truths and principles behind our investing philosophy. We are committed to this philosophy as a journey of discovery and intelligence. It supports our purpose to help clients honor the important promises they have made to their loved ones and to help enable intentional living:
Being thorough in understanding the truth behind your actions, staying the course when your emotions are trying to overcome your logical thoughts and reasoning abilities, focusing on your long-term promises and not letting fear overshadow your vision of your future are all essential in helping you make wise investment decisions.
Though diversification, asset allocation and efficiency can be considered a single, comprehensive concept, it’s important to understand the possible distinctions between the three. Diversification allows investors to reduce business-specific risk by abiding by the “don’t put all of your eggs in one basket” adage. Asset allocation builds on the notion of diversification by looking at security or investment risks in the context of a broad portfolio rather than in isolation. Efficiency helps to produce the best possible asset allocation, given an investor’s unique risk tolerance.
Taken together with the market, asset allocation decisions can account for the most significant amount or percentage of variation in return. Thus, an investor should leverage a dedicated Financial Professional to help design and select proper asset allocation prior to considering active portfolio management.
Rebalancing strategies are designed to realign a portfolio back to its initially established asset allocation model or the “target” weightings of individual investments within a portfolio. Such periodic and automated rebalancing is a recognized way to help control the emotional tendencies of investors to buy high and sell low.
The principle of compounding returns is one of the most powerful yet least-appreciated forces in investing. For asset allocation to achieve successful investment results over any meaningful period, an investor must have some sense of long-term perspective and purpose in order to maximize the “force multiplier” effects of compounding.
Ownership of stocks is important for the growth of capital for investors. Though past performance makes no guarantee of the results we will see in the future, U.S. stocks have historically rebounded after periods of negative performance.
Emotions often guide our actions, and this includes the choices individuals make when it comes to their investments. Various cycles in the market cause fears or hopes for people, impacting the buying and selling of equity funds.
Forecasting systematic risk factors is extremely difficult, and successfully timing the market is not probable, consistent over long-periods or proven through research. Unknown probabilities and magnitudes of various market risk scenarios added to regime changes can make even the most appealing market timing strategies quickly proven wrong.
Human beings have not yet mastered the ability to predict the future accurately, but that does not always stop investors from mistakenly believing they know more than others about what’s to come. However, the events that will impact the future are not known, so there is still the ever-present lack of certainty about the future ahead of us.
With a disciplined process, it’s possible to find those investment managers who have the greatest chances of helping clients honor their promises. There are both quantitative and qualitative considerations in this process that will ultimately help to determine which individuals are best suited to serve as portfolio managers for clients.
The most effective wealth management professionals know that they must listen carefully to their clients in order to fully understand their promises they want to keep for their loved ones and to provide comprehensive and competent plans for action.
Life is filled with many stages and major events, both expected and unpredictable. We believe that creating a well-defined financial plan around those investment goals important to you will allow you to enjoy the journey, no matter what comes your way. We focus on understanding your unique situation and goals — designing a plan that aligns with your vision and responsibilities now and in the future. We then provide recommendations based on helping you achieve your goals so you can fulfill the promises you have made to yourself and your loved ones.
The things we look at include
1) Retirement Planning - "Making sure you're set when the time comes"
2) Investment Management - "How can you make the money you have work for you"
3) Tax Planning (unique to our relationship) - "Paying taxes is a certainty, but we help ensure it won't obliterate your finances"
4) Family Risk Management - "Protecting your finances and safeguarding your hard-earned money"
5) Cashflow and Debt Management - "Maintaining efficient oversight"
6) Legacy and Estate Planning - "What happens to your wealth after you're gone?"
7) Business Planning - "Keeping an eye on the future of your business"
8) Education Planning - "Preparing for the rising cost of college for your loved ones"
9) Special Situations - "Asking those difficult 'What if?' Questions"
Tax law is complex and constantly changing. We strongly believe that every financial decision at its core is a tax decision and that taxes should be treated as more than a once-a-year event. Taxes are one of life's most complicated and largest expenses, yet most financial/wealth advisors treat taxes as an afterthought without regard to a client's situation. If not properly planned for, taxes can unnecessarily erode the net result of all your hard work and what you take home.
We're dedicated to providing comprehensive tax - smart financial planning and utilize an array of ongoing tax - optimized strategies to maximize your wealth and meet your goals. Combining our professional experience as tax and financial advisors allows us to identify strategies unique to your situation and help you achieve the best financial outcomes.