"The best thing we can do is size up the chances, calculate the risks involved, estimate our ability to deal with them, and then make our plans with confidence."
Investment Management Process
An article by Geoff Davey, Co-Founder of a risk profiling system describes risk in four ways:
- As risk tolerance, your personality trait linked to the amount of risk you ordinarily take
- As risk capacity, which is the financial risk that you can afford to take
- As perceived risk, which is the risk that you perceive in any alternatives being considered
- As required risk, which is the risk that you must take on to achieve your goals
By obtaining a risk tolerance questionnaire from you and preparing a financial strategy for you, we are able to address all four risk characteristics when developing an investment policy statement and portfolio recommendations.
Studies have indicated that over 90% of the variation in portfolio returns is due to asset allocation. Based on your risk profile, we select a target asset allocation aimed to achieve your financial goals. By diversifying your portfolio over a variety of asset classes, we can reduce the overall risk of a portfolio.
We take time to fully research all investment recommendations that we make to our clients. We have created a recommended list of funds that we continually monitor and update. When analyzing a fund, we review the fund objectives, top holdings, the risks associated with owning the fund, as well as the fund manager. We can also create custom portfolios utilizing stocks, bonds and exchange traded funds for clients with investable assets over $500,000.
We utilize various strategies in order to minimize the taxes you pay on your investments. These strategies include, but are not limited to sheltering income inside registered accounts, utilizing corporate class funds, investing in tax managed funds, leveraging and spousal loans.