WHO WE ARE
we do for you.
We can and do help our clients with their investments, however our real asset is helping those clients plan for their future. As a result, for those clients that qualify, we make certain that everything we do begins with a comprehensive financial, investment, and estate plan. In short, financial planning. Without it, we are just hoping and hope is not a plan.
Our approach has three Principles and three Practices. They all apply to both our financial planning clients and our investment clients.
Faith, Patience, Discipline
Everything begins with Faith. The future is bright and our nation and the world will continue to improve the goods and services we have been blessed with. We have faith in the future.
"I tell you the truth, if you have faith as small as a mustard seed, you can say to this mountain, 'Move from here to there,' and it will move. Nothing will be impossible for you." Matthew 17:20
As investors, we must be patient. We know that life will not always deal the hand we want dealt. So, in those times of uncertainty, we must exercise patience.
A patient investor must have discipline. We stay with the allocations we have set in place and resist the temptations to make revisions just for the sake of making changes or because of what we heard on the news today.
Allocation, Diversification, Re-balancing
The large majority of an investors return is driven by the percentage allocated to equities or debt. Our portfolios are setup to have an equity/debt allocation that has some potential of producing the returns our clients need.
(Asset allocation does not ensure a profit or protect against a loss and past performance is no guarantee of future results.)
We spread out among enough different investments to avoid major investment repercussions. One example of how our portfolios are diversified is that if we are investing in equities, we will not just own large companies in the United States. Instead we will probably own large, medium, and small companies in the United States as well as large, medium, and small companies that are based in foreign countries.
(There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not ensure against market risk .)
There will be times when market conditions will skew our portfolios away from our original intended allocations. So, one time each year our assets are re-balanced back to the original intended allocation. This allows us to sell the securities that have gone up and buy back the securities that have gone down. We are not timing the market, but simply re-balancing to our original portfolio goals. Thus, we are selling high and buying low. (Re-balancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.)