Investment Management
Our investment portfolios are carefully designed to help retirement investors reduce risk, improve returns, and create a reliable income stream.
Investment Questions sound like…
• How can I stay protected from the next market crash?
• Am I invested in the right way?
• Am I paying too much?
• What happens if the market crashes again?
1.) Keep Investment Costs Low
According to Morningstar, the cost of your underlying investments is one of the best predictors of future returns.
In other words, low-cost investments, historically, have outperformed high-cost investments.
For that reason, we build our retirement portfolios using index funds. We believe this helps to improve the success rate of our client’s retirement plans and reduce unnecessary risk.
2.) Own Tax-Efficient Investments
Warren Buffett says his favorite holding period is forever. We agree!
While buying and holding forever isn’t practical for most retirement investors, we create portfolios with “low turnover.”
Every time an investment is bought or sold (i.e., “turned over”), costs are incurred, costs like transaction fees and taxes.
These costs eat away at your investment returns. So, to optimize investment returns and
mitigate taxes, where possible we intentionally own investments with low turnover.
3.) Own the Right Asset Classes
Not all investments are created equal.
Just because you can invest your money into something (e.g., gold), does not mean you should!
We only invest in asset classes that:
- Are positively supported by peer-reviewed, academic research
- Work well when invested together in a diversified portfolio (e.g., low and/or negative correlation to each other)
For example, high-yield bonds can behave like stocks during catastrophic events. That might not provide proper diversification of safety for an investor who is in retirement.
As a fiduciary, our job is to make investment decisions that are in your best interest. This means ignoring the daily headlines and sticking with evidence-based solutions.
👉 Want to learn more about creating income in retirement? Click here to get your Free Retirement Assessment.