The process of identifying and implementing effective strategies to create and accumulate the financial resources necessary to achieve financial goals.

Our investment plans are based around these key principles:

• Beating the market is impossible – active money managers that try to “time the market” have consistently failed to do so in both Bear and Bull environments
• Broadly-diversified portfolios – the power of capitalism and free markets mean that it is not unreasonable for investors to expect stock prices to gradually rise over time
• Risk and Return are Related – academic research has proven that some risks are worth taking: Market Risk (stocks outperform bonds), Size Risk (small companies outperform large companies), and Value Risk (Value stocks with high book to market ratios outperform Growth stocks that have low book to market ratios)
• Structured Diversification can help reduce volatility and enhance wealth – it is impossible to know when an asset class will outperform all others and when it will underperform all others. Structured diversification which involves owning a mix of assets that have different price movements, along with outweighing equities and small and value companies will help ensure your portfolio does not crash because of one single asset class that is underperforming.
• “Ideal” Portfolios depend on risk capacity – your “ideal” portfolio is based on your goals, income needs, and horizon.
• Long-term perspective – Once your portfolio is created, let it do its job. This means staying invested during downturns and shutting out the many emotional and behavioral reactions that come with such downturns that often lead to costly mistakes. Regular Rebalancing is needed to maintain the originally desired risk/return characteristics.