Investment Management
How We Manage Your Investments
We take a smart, streamlined approach to managing your finances. At the core of our methodology is Modern Portfolio Theory—an evidence-based framework that leverages diversification to enhance returns while effectively managing risk.
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Investors are often surprised to learn that their most important investment decision is selecting the mix of assets to be held in the portfolio, not selecting the individual investments themselves. This is asset allocation. It's how you divide your portfolio among different uncorrelated assets like stocks and bonds.
Stocks give the greatest return over the long haul. But the trade-off is high volatility. A well-diversified portfolio optimized specifically for you will enable a less volatile outcome and more importantly, less sleepless nights.
Focused on Low Costs, Tax Efficiency, and High-Quality Investments​
Our goal is to help you retain more of your hard-earned wealth. Here’s how we do it:
Cost-Effective Investment Solutions
We prioritize low-cost vehicles such as index funds, ETFs, and closed-end funds to minimize fees and maximize value.​​​​
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Tax-Efficient Strategies
Through techniques like direct indexing with long/short extensions and strategic asset placement, we work to reduce your tax exposure and keep more of your capital compounding over time.
Ongoing Portfolio Optimization
We conduct annual rebalancing to ensure your portfolio remains aligned with your goals and risk tolerance.​​​
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Why We Don’t Attempt to Time the Market
Market timing may seem appealing, but it often proves to be a costly and unreliable strategy. Here’s why we avoid it:
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The Risk of Missing Key Market Days: A small number of high-performing days can significantly impact long-term returns. Missing these can set your portfolio back substantially.
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Unpredictable Market Behavior: Markets respond to a wide range of factors—economic data, geopolitical events, and even speculation. Predicting these movements with consistency is virtually impossible.
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Hidden Costs of Frequent Trading: Attempting to time the market often leads to increased transaction costs and tax liabilities, which can erode overall returns.
By staying invested and focusing on long-term fundamentals, we aim to build resilient portfolios that grow steadily over time—without relying on speculation.
Here is the bar chart showing the hypothetical growth of a $100,000 investment over 15 years, based on whether you stayed fully invested or missed the market’s best days:
Key Takeaways:
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Fully Invested: $759,375
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Missed 10 Best Days: $481,987
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Missed 20 Best Days: $341,365
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Missed 30 Best Days: $248,824
Source
Data is based on historical S&P 500 performance and the impact of missing the best days, as reported by BlackRock and Bloomberg (as of 12/31/2024). These figures are illustrative and assume compound growth over 15 years.
Keep Your Portfolio on Track
Why Rebalance Annually?
Markets shift, and your investments grow at different rates. Annual rebalancing realigns your portfolio with your goals—helping you stay disciplined and reduce risk.
Key Benefits
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Stay Aligned: Maintain your target allocation and risk level.
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Control Risk: Avoid overexposure to high-performing assets and preserve diversification.
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Boost Returns: Buy low, sell high—reinvest in undervalued areas.
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Stay Disciplined: Minimize emotional decisions with a structured approach.
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Simplify Planning: Keep your strategy consistent and easy to manage.