The investment world is full of people clamoring for your attention, including both the media and investment professionals. However, most of what they say is just "noise" aimed at gaining your viewership or selling you a financial product. We help you to rise above the "noise" and follow a time-tested and proven "madness-free" investment strategy. We believe in and utilize Nobel Prize winning modern portfolio theory, strategic asset allocation and long-term buy and hold strategies with respect to securities investments. The guiding principles of our investment approach are as follows:
- Don't put your eggs in too few baskets - a highly diversified portfolio reduces risk and increases expected returns. Successful investing requires more than taking risks to get an expected return. It also means reducing risks that do not enhance return. Avoidable risks include holding too few securities, betting on industries or countries or trying to time the market.
- Play a winner's game - invest using low cost and tax efficient index mutual funds and exchange traded funds (ETFs). Passive or index investing seeks to track the returns of a benchmark index, such as the S&P 500. Active investors seek to beat the benchmark returns through ongoing buying and selling. Active investors typically have higher expenses and tax costs. Passive investors win by not losing, since over extended periods passive investments have been proven to deliver higher returns than most of the more expensive actively managed alternatives.
- Manage risk, not returns - asset allocation is driven by your goals, preferences, time horizon, risk tolerance and need to take risk. An optimal portfolio provides the highest expected return for a given amount of risk.
- It's not what you make, but what you keep - keep expenses and taxes low to increase your returns. We build portfolios using low cost index mutual funds and ETFs. A buy-and-hold approach minimizes taxes, and we consider the location of investments (taxable verses tax deferred accounts) when constructing portfolios.
With our approach you can escape the "money madness" and rest easy knowing that your plan is in place and is based on a time-tested philosophy that is supported by years of historical research from some of the world's leading financial minds.
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