Picking the right investment is often considered the key to success, we believe this is only a small part of the equation.
The most important value an advisor can provide, this is our behavioral value proposition. When (not if, but when) the market drops 30 percent, fear and panic set in. The investor’s chief problem then is in his head. At this point, our job is to keep the individual from blowing himself up by selling his equity holdings.
Financial security is a desired destination, and financial planning is the beginning of the trip to reach that destination. Financial plan is a comprehensive evaluation of an investor's current and future financial state by using all known variables to predict future cash flows, asset values and withdrawal plans.
Our industry is in agreement that asset allocation is the most important factor in the performance of a portfolio. It is puzzling, therefore, to find so many investors with a portfolio that is not appropriately diversified and based on pertinent factors like their age, risk tolerance and financial goals.
Tax alpha is the added advantage of structuring an investor’s portfolio to ensure tax efficiency. A financial plan must be tailored from a tax perspective, with the elements of the financial plan working together in the most tax-efficient manner possible. We work with the client’s tax professional to ensure this is done.
Investment Alpha is defined as the excess return of a portfolio relative to the return of a benchmark index, like the S&P 500. Alpha measures the performance of an investment against the respective index. While this is the “alpha” most people talk about, we believe it’s the least important of the five.