Our Approach

Our core beliefs about Personal Financial Planning

Personal financial planning is about providing a service, not a product.
We focus our planning efforts on your needs, wants, and wishes. In contrast to earning commissions on financial products or securities you may purchase in implementing your plan, we are compensated directly by you, much as your attorney or CPA are. The "independence" section further discusses this core belief.

Effective financial plans respect, but embrace, uncertainty.
There are many "moving parts" at work in our personal and financial lives, and while we can influence much around us, we are best served by preparing to adapt to changes in the economy, tax laws, and family obligations. In addition to a prudently deploying investment assets, the plan should "stress test" investment risk/return assumptions and simulate the unexpected loss of earnings or increased expenses. In this way, the effects of retiring later (or earlier!), working part-time during retirement, or increasing disability coverage, for example, can be evaluated. Playing out scenarios enables more insightful decision-making and makes the plan more robust in the face of uncertainty.

Financial planning is a support function.
Only you have ultimate control of your financial future. As such, you determine which recommendations made by your advisors will be implemented and by whom. Our role is to help you make informed financial decisions consistent with your goals and facilitate their implementation. If you are not actively engaged in monitoring the progress you are making, we are not fulfilling our role.

Effective financial plans require teamwork.
Your financial plan does not exist in a vacuum. It takes coordinated action to give it meaning, and will likely involve input from insurance, tax, legal, or other professionals. Further, periodic plan reviews are often most effective when all your professional advisors are actively involved in the process.

Our core beliefs about Investing

Prudent investing begins by defining goals and risk tolerance.
An Investment Policy Statement (IPS) outlines the objectives, expectations, and constraints related to your investment portfolio and is an essential part of implementing your financial plan.

Financial markets are efficient.
We believe free market prices quickly reflect all information relevant to the valuation of a security. Millions of investors throughout the world lay ready to pounce on any earnings announcement, regulatory filing, news item, or the release of economic data to make trading decisions. And since the timing and content of such information are largely unpredictable, attempting to profit from short-term market swings is extremely risky and costly.

Risk and return are inseparable.
Stocks and bonds that offer higher average returns relative to the market almost always carry higher risk. Understanding this relationship enables investors to strike a balance between their performance goals and the degree of uncertainty they can accept. This should be addressed in the IPS.

Diversification is crucial.
The most sensible way to seek higher expected returns is through broad diversification across many asset classes, industries, and geographical markets. A well-diversified portfolio balances out the random effects of individual stock performance.

Costs matter.
Skillful portfolio management and smart, patient trading can produce real cost savings over time. These savings accrue directly to an investor’s return.