Our investment strategy follows rules:
- Keep expenses low.
- Passive index investing lowers risk and takes advantages of long-term gains in the stock market.
- Diversification across asset classes is essential, as the performance of individual asset classes varies in different economic environments.
- Rebalancing periodically allows for sale of asset classes that have appreciated above the target (i.e. sell high) and purchase of investments that have fallen below the target (i.e. buy low).
- Investing on emotions often leads to mistakes.
- The pain of losing money is greater than the satisfaction of making money.
The result is:
- We use exchange-traded Funds (ETF’s) and index funds which are low-expense, tax-efficient vehicles (and often have no transaction fee).
- We are an approved Dimensional Fund Advisors investment management firm. We use their low-cost index funds in many asset classes.
- When available and appropriate we use individual bond ladders that are cost-efficient, hedge against interest rate changes, and provide a steady income stream for those clients where income and safety of principal is important.
- Each client has an investment plan tailored to individual goals and risk tolerance.
- We manage both discretionary and nondiscretionary assets.
- We believe in taking only the risk necessary to achieve your investment goals.