Investment Philosophy

We believe in broad diversification to optimize risk and return and we manage your portfolio with income tax efficiency and cash flow considerations in mind. Our investment philosophy is grounded on objective, academically based models that minimize market forecasting or prognostications.

Based on our thorough initial data gathering, we develop a complete picture of your current financial situation, your investment return needs and expectations and your risk tolerance. With this information in hand, we’re able to develop an investment portfolio designed to create the returns you need to reach your longer term goals while also minimizing your risk. Because we believe that cash flow is a major determinant of financial success, we strive to develop a plan that generates the necessary cash flow to sustain your desired lifestyle over the long term.

As we work with you to develop an appropriate financial plan and investment portfolio, we keep four core principles in mind:

Total Portfolio Approach

We use an asset allocation and asset location strategy to integrate and coordinate all of your family accounts, including:

  • Single, joint and trust accounts
  • Custodian accounts for minor children
  • 529 college savings plans
  • Traditional or rollover IRAs
  • Roth IRAs
  • 401(k), profit-sharing or employer plans
  • Annuities
  • Non-qualified retirement plans
  • Employer stock options

Broadly Diversified Portfolio

We are strong believers in diversification and use a “multi-asset class” strategy for diversification. Investments may include:

Our "Multi-Asset Class" investing may include:

1.   Common Stocks
  • US stocks
    • Size:
      1. Large Company
      2. MidCap
      3. Small
    • Investment Style:
      1. Growth
      2. Blended
      3. Value
    • Management Form:
      1. Active or Traditional Management
      2. Passive or Index Management
  • International stocks
    • Large Company and Emerging Markets
2.   Alternative Investments
  • Real Estate Investment Trusts
  • Commodities; Tangible Assets
  • Low-Volatility Investments
3.   Bonds
  • Issuer: Government, Comporate or Municipal
  • Maturity: Short, Intermediate or Long
  • Credit Quality: High, Medium or Low (Junk Bonds)
  • Inflation-Protected Bonds

Risk and Return Are Related (The 3 Rs)

Every investor wants a low-risk portfolio but low returns may not enable you to reach your goals. The return needed to meet your goals may require a higher level of risk.

Minimize Fund Fees, Expenses and Income Taxes

All other things being equal, lower costs and lower taxes mean higher net returns. We cannot control stock market conditions or interest rates, but we can add value by minimizing costs and income taxes. Net returns are what count.