Because of the complexities of personal finance today, you need an advisor with the broad knowledge and skills delivered by working with a CERTIFIED FINANCIAL PLANNER™ Professional. When needed, we work with your tax advisor or attorney to help develop your plan. In addition, we have other tax specialists, insurance professionals, and estate attorney’s who are able to consult with to meet your planning needs. We are able to work on specific projects for you, or when needed, help provide a comprehensive plan. The areas we often work in are retirement planning, investment design and selection, asset allocation, tax planning, charitable funding strategies, estate planning, risk management, IRA’s and tax deferred employee plans, and educational funding strategies.
In short, we hope to earn your trust as a personal financial confidant who has the knowledge and skills to guide you through the complex and confusing areas of personal finance.
For many people, the idea of making the right decisions about where and how to invest can feel like a daunting task. Our choices have exploded in recent years. There are many opinions, often contradictory, about what a person should do. We understand how you feel. The answers we have come as a result of our studies of the academic underpinnings of sound investing. The academic research we discovered cuts through the noise and confusion that investors often face. Academic research reveals what really drives investment return, helps reduce volatility, and simplifies the process. So here are the fundamental tenets we believe in that come from academic research:
1. Securities markets are efficient, quickly incorporating information, making it difficult to find securities that have been mis-priced. Academic research, therefore, indicates that it is very difficult to best the market itself. The markets reward capital investors over time, so we let the markets work for us. Stock picking and market timing don’t beat the market as a whole over time, besides being more expensive and tax inefficient over time. Chasing past performance provides little insight into a fund’s ability to outperform in the future.
2. Academic research has revealed that there are certain dimensions of return that drive expected returns. Examples of these “dimensions” are stocks vs. bonds, small vs. large companies, value vs. growth companies, and high vs. low profitability companies. These dimensions are persistent, robust, and can be pursued in cost effective portfolios.
3. Diversification helps reduce risks. We believe diversification should be across asset classes on a global basis. Combining different asset classes in a portfolio helps reduce risk, because different asset classes don’t always move together with each other. We work to help you invest in the portfolio that allows you to achieve the maximum return possible for least risk possible.
4. Investing can be an emotional experience. Markets will always be going up or down, triggering very powerful emotions. Daily market news and commentary can challenge your market discipline. We are there to help you avoid the mistake of reacting to current market conditions, which may lead to making poor investment decisions at the worst times.
5. We work to create a plan tailored to your personal financial needs while focusing on actions that add value. The ways we help you do this are by creating an investment plan to fit your needs and risk tolerance; structuring a portfolio along dimensions of expected return; diversifying broadly; reducing expenses and turnover; periodic rebalancing of the asset classes in the portfolio; and minimizing taxes.