A Sound Investment Strategy Propels Us Toward Life Goals
Planning provides the skeletal structure for progress; a sound investment strategy is what propels us toward life goals.
My investment posture is sound, conservative, and highly customized to you. I encourage you to speak with me in advance of any investment decision.
Our discussions regarding strategy are not limited to those assets that will be under my management. In fact, I will encourage you to define in a fairly broad way what an investment really is. For example, an asset could be your business or professional practice; and the building that houses your business as well as the personnel who help you operate your business could be considered investments.
A Four-Step Process
I have a four-step process that I follow in assessing current assets and in making strategic investment recommendations.
Analysis of Titling & Ownership
First, I ensure that the titling and ownership of all assets is
appropriate. Should you consider the use of Trusts instead of holding the assets jointly? Should the
investment property be held in an LLC?
Analysis of Holdings
Then I analyze holdings within the context of your entire portfolio of assets and in relation to your
attitude about risk. Does the overall asset allocation make sense?
Is it reflective of your personality, your goals, and your tolerance for risk?
Appraisal of Instruments
Thirdly, I appraise the instruments currently being utilized as well as alternatives. I may ask you to
consider mutual funds, exchange traded funds, or individual stocks. I may ask you to consider REITs instead
of or in addition to actual real estate.
Implementation of Timeline
After I have reviewed the pertinent information and gathered opinions from other qualified professionals,
we complete the fourth and final phase: "talk, sleep, and decide." We discuss the opportunities,
I make recommendations, and together we take time to consider all the possible ramifications. Together
we will set the investment plan to a timeline which, if necessary, can be modified. For example, I might
discuss with you the pros and cons of deploying the cash in your IRA rollover immediately or over a set
period of time, based upon the valuation of the asset classes being used.
I Believe in Diversification
When it comes to equities, I believe in diversification — if not modern portfolio theory — and I favor value investing. I aim to maintain truly long term holding periods for stocks, as long as valuations remain reasonable. While "buy and hold" might provide an inaccurate portrayal of my approach, "buy and buy again" is in the realm. If a company with strong earnings stays cheap or gets cheaper, I will want to add to existing positions. Unlike many investors and advisors, I still consider p/e ratios important as a general guide. And I love to see a company with a history of rising dividends.
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