The key to successful, long-term investing is a well-diversified, customized portfolio that focuses on tax efficiency, cost-effectiveness, and risk management. We create and manage investment models tailored to your goals, timelines, and evolving life circumstances, to help your money grow in ways you feel comfortable.
Our Investment Philosophy
As fee-only Fiduciaries, we only recommend products that are right for you, we never receive commissions so you can trust that we are working for you, and you alone.
We advocate for informed, disciplined, long-term investing because of the relationship between time and volatility. Volatility measures the degree to which prices change over time. The greater and more frequently an investment’s price swings both up and down, the higher it volatility.
Investments with high volatility have a high degree of [risk] in the short-term because their prices are unstable, but that short-term volatility is not necessarily indicative of a long-term trend. A security can be highly volatile on a daily basis but show long-term patterns of growth or stability.
The longer you invest, the more likely you will be able to weather market dips and benefit from both compounding interest and dollar-cost averaging. And over the long term, assets with higher short-term volatility risk (such as stocks) tend to have higher returns than less volatile assets such as money markets.
That’s why we help you select investment choices that work for your time frame as well as your risk tolerance so that you can benefit from compound interest and feel comfortable with your investments.
Curious about Behavioral Finance?
Behavioral finance, a sub-field of behavioral economics, is a psychology-based way of looking at stock market anomalies, such as severe rises or falls in stock price. The purpose of Behavioral Finance, something Brad Sherman studies in grad school, is to identify and understand why people make certain financial choices. It focuses on the fact that investors are not always rational, have limits to their self-control, and are influenced by their own biases.
Don’t forget that Tax Planning is an important, and often overlooked, part of a smart investment strategy.
And click here to get started with a free consultation to discuss how we can help you make sure your investment strategies are the right ones for you.