Our Investment Philosophy
Your Prosperity Is our Goal
The statement above summarizes our firm's core beliefs. This provides the basis for your Investment Policy. The entire staff participates, at different levels, in the development of our philosophy. All members of the firm are committed to its consistent implementation. Policy design, implementation, continuous monitoring and, as necessary, modification, are integral parts of the wealth management process. Our success is measured not by performance statistics but rather by our clients' success in achieving their goals.
Client Related Concerns
We believe that clients must set their own goals. It is our responsibility to educate them in the process and to assist them in defining, quantifying, and prioritizing their goals
We believe that clients need total return, not dividends or interest. The traditional concept of an 'income' portfolio is outdated and places unnecessary and inappropriate restrictions on portfolio design.
We believe that 'conservative' assumptions are a dangerous myth. Return requirements should be based on real rates of return. An investment policy should not be prepared based on a client's unrealistic expectations. If necessary, we will refuse the engagement.
We believe that a client's risk tolerance is a significant constraint in the wealth management process. Success can be measured by our clients' ability to sleep well during turbulent markets
We believe that tax considerations must be considered. However, the goal of tax planning should be to maximize after-tax returns, not to minimize taxes.
We believe that the relative risk of increasing equity exposure decreases as the time horizon of the goal increases. We believe that any 'investment in Equities' should be made for a goal with more than a five-year time horizon. Funds required in fewer than five years should be placed in money markets or fixed income securities (e.g., FDs, Bonds) with maturity dates equal to or less than the goals' time horizons.
We believe that there should be regular review of a client's situation to determine if he is continuing to move in the direction of achieving his goals. This includes revisions in strategic allocations as a result of revised assumptions or changing client circumstances or goals. We shall continue to educate our clients, always remaining sensitive to the volatility of each one's expectations. Our responsibility is to assure that our client 'stays the course' and does so with a minimum of emotional pain. The focus shall always be the client and the achievement of his goals, thru the performance of the portfolio.