Broker Check

Investment Philosophies

Modern Portfolio Theory

Modern Portfolio Theory

  • Asset Allocation
    • Start with a plan. Select a stock/bond allocation based on your goals and time horizon
    • Utilize a broad range of asset classes to ensure diversification
    • “The sum of the parts over security selection”
  • Efficient Frontier
    • Upside/downside optimization
    • Risk adjusted return
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Adhere to Risk Based Investing

  • Know your risk tolerance. Be prepared.
    • Understand volatility ranges to a 95% probability
  • Know your portfolios risk budget
  • Follow a systematic investment process
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Timely and Tactical Adjustments

  • Seek value from tactical decisions
  • Disregard market timing
  • Quarterly review for rebalances
    • Sometimes the decision is NOT to rebalance

Tactical and/or rebalancing allocations may involve more frequent buying and selling of assets and will tend to generate higher transaction cost.  Investors should consider the tax consequences of moving positions more frequently.

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Focus On Results

  • Performance rarely comes from individual security selection
  • Active vs passive
    • There is a place for both.
    • Passive investing still needs ACTIVE asset allocation!
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Aim to Investment Costs without Sacrificing Value

  • Utilize top quartile money managers
    • Seek Alpha over benchmark
    • Index investing with a tactical managed overlay
  • Use strategic benchmarks to monitor results

Minimize taxes on investment gains when appropriate

Do not sacrifice investment decisions for a tax decision

Liquidity is an integral part of successful investing

Have a cash reserve with a purpose

Distribution strategies are an important component of portfolio longevity

Total return approach
Bear market adjustments to withdrawals

All investing involves risk including loss of principal. No strategy assures success or protects against loss.