Your financial situation is unique. Accordingly, your plan is customized to align your money with your life. All our investment strategies are based on three fundamental observations:
Your customized portfolio will be built on decades of rigorous academic research and the latest thinking applied to your particular situation. Our investment management services include customized portfolios, ongoing portfolio management, and periodic performance reviews to ensure alignment with your goals and objectives.
Exposure to numerous asset classes reduces the risk that any one investment or any one market could substantially impact your portfolio. Volumes of empirical studies confirm that stock picking and market timing are not worth the increased risk and cost you incur by engaging in such activities. Accordingly, our portfolios are diversified across more than 12,000 securities, representing companies and governments operating in 47 countries worldwide.
The Risk/Reward Tradeoff In general, stocks are more volatile than bonds. However, not all stocks are equally risky. Small-company stocks ("small-caps") are riskier than large-company stocks, and low-priced "value" stocks are riskier than high-priced "growth" stocks. Risk and reward go hand-in-hand. Exposure to small-cap and value stocks can increase long-term expected returns. These risk dimensions are strong and consistent not only in the US, but also around the globe.
Bonds have two primary risk factors:
Credit Risk: Lower credit quality bonds are riskier than higher credit quality bonds.
Time Risk: Longer-term bonds are riskier than shorter-term bonds.
The retail financial services industry has done a masterful job of hiding the true costs of investing. But, costs matter and they are one of the few things we can control no matter what the markets are doing. Because taxes can be a huge drag on performance, we are vigilant about minimizing them. Our team of CPAs, attorneys, and CFPs are expert at minimizing the damaging effects of excessive costs and taxes on your wealth.
Many financial firms these days say that they offer "wealth management." But, what does that really mean? To us, true wealth management can be broken down into a formula: