It’s important to understand these foundations and other principles that guide Investment Advisor “fiduciaries”, and how they are designed to lead to long term success.
The “Prudent Investor Rule” requires a fiduciary to consider the following:
- Duty to consider taxes
- Duty to consider fees
- Duty to be loyal, impartial and objective
- Duty to delegate to experts
- Duty to monitor
With those in mind, when we recommend investments we believe…
- Successful portfolio management is suited for the long term.
- Asset Allocation is one of the most important element in constructing personal portfolios.
- A global equity based portfolio may provide a good opportunity for long term wealth.
- Proper diversification reduces risk while allowing you to participate in market returns.
- We believe that both passive and active investment management can lead to reduced overall expenses.
- We believe in re-balancing portfolios.
- We consider tax effects on portfolios and stress after-tax returns.
- We believe that clients need investments that consider their unique tax situation
- We do not chase returns or consider “hot” stock tips.
- Transaction fees and taxes should be kept to a minimum.
Asset allocation and diversification do not assure or guarantee better performance and cannot eliminate the risk of investment losses.