Our Investment Philosophy

Client Centered

Our investment philosophy is grounded in the belief that simplicity is key to successful long-term investing. We believe that overly complex investment strategies, such as those involving illiquid securities, high fees, leverage, or black box strategies, invite outside risks into an investment plan. Our goal is to simplify the investment process by building globally diversified, low-cost portfolios that are constructed with a focus on risk management.

Our investment approach prioritizes asset allocation over stock-picking or constantly searching for alpha (beating the market). By building globally diversified portfolios across asset classes, strategies, market caps, and risk factors, we strive to maximize returns while minimizing risk. Rather than focusing solely on “beating the market,” we prioritize portfolio construction and risk management.

We believe that asset location is an often-overlooked aspect of investing that can significantly impact returns. By considering the tax implications of investments, we seek to maximize after-tax returns. This means placing tax-inefficient investments, such as REITs and high-yield bonds, in tax-deferred accounts, while holding tax-efficient investments, such as broad market index funds and ETFs, in taxable accounts.

Tax loss harvesting is another strategy we utilize to minimize tax liabilities and maximize after-tax returns. By selling losing positions to offset gains or income, investors can reduce their tax burden while maintaining their overall investment strategy.

Retirement income planning is a critical component of our investment philosophy. We believe that it is essential to have a plan in place to generate income in retirement, as well as to ensure that assets are preserved for future generations. To this end, we develop customized retirement income plans that consider factors such as the client’s risk tolerance, current and projected expenses, and desired lifestyle. The portfolios we build reflect these plans.

Client Centered

We also recognize that risk tolerance varies among investors, and we work with each client to determine their individual risk tolerance. By understanding our clients’ goals, time horizon, and risk tolerance, we can construct portfolios that are tailored to their specific needs.

While we believe that index funds and ETFs are often the most cost-effective and efficient way to gain exposure to broad market segments, we also recognize that individual bonds can play an important role in a well-diversified portfolio. By investing in individual bonds, investors can reduce volatility and ensure a predictable income stream.

In summary, our investment philosophy emphasizes simplicity, asset allocation, risk management, tax-efficient investing, retirement income planning, individual bonds, and tailoring portfolios to individual risk tolerance. We believe that these principles provide a solid foundation for successful long-term investing and help investors achieve their financial goals while minimizing risk.

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