Successful investing requires patience, fortitude, and time. The longer your holding period, the higher your odds of success. In order to remain invested and reap the benefits of compounding, you need a portfolio that you fully understand and can stick with through the inevitable ups and downs.
Finding the right portfolio starts with getting to know you:
- What are your goals — personally, professionally, and financially?
- What are your needs — how much do you need to comfortably live the life you want to live?
- What is your purpose — what brings the most joy and meaning to your life?
The answers to these questions are inherently personal. We all have different goals, different needs, and a unique sense of purpose.
Your investments should reflect these differences, and our job is to help find the portfolio that is best aligned with you.
Because life is not a passive event, your portfolio may warrant adjustments over time. Needs change; goals change; risk tolerances change. Life happens — and when it does, we’ll be there to guide you – every step of the way.
Investing is not like mathematics or physics. There are no fundamental laws that govern the markets and dictate their every move. There is no equation that can solve for the perfect portfolio.
This lack of precision demands a humble and flexible approach. We believe the three most important words in investing are “I don’t know.” No one can consistently predict market tops and bottoms, recessions and expansions, or the best and worst investments.
Since we can’t predict the future, we diversify: across geographies, asset classes, and strategies. In doing so, we aim to increase the probability of successful outcomes.
We view education as an edge, taking the time upfront to make sure you know what you own and why you own it. By creating thoughtful content, we hope to give context to market movements and mitigate harmful investor behavior (buying/selling based on greed/fear).
The more we know about you, the better advice we can give.
The starting point of our investment process is a personal assessment that evaluates your financial picture (balance sheet, income statement), your profile (age, holding period, risk tolerance), and your purpose (goals-based planning).
We use that assessment to match you with the appropriate portfolio, something we call “portfolio-investor fit.” Most clients will employ some combination of our strategic and tactical asset allocation strategies, both of which utilize ETFs for their tax efficiency, liquidity, and lower costs.
The strategic portfolio is designed to be your core allocation, seeking long-term capital appreciation and/or current income, depending on your profile. Once a suitable mix of risky assets (stocks, real estate, etc.) and fixed income is determined, the relative attractiveness of each asset (risk vs. reward) will dictate its initial weighting in your portfolio. Going forward, changes will be made to a) rebalance back to target weights and b) when the risk/reward warrants.
The tactical portfolio is designed to manage risk, seeking to provide exposure to risky assets while decreasing the likelihood of incurring a large drawdown. Using a systematic process, the tactical portfolio actively shifts between an offensive and defensive posture.
We invest based on data, evidence and probabilities. We don’t believe in price targets or prophesies that have become commonplace in financial media today. While it is their job to entertain, it is our job as investors to ignore such noise and focus on what really matters.