Working with clients we carefully review their financial situations and tolerances for risk and develop personalized investment strategies to
help achieve their goals. Recommended investment portfolios offer a diversified mix of equity (stock) securities; a diversified mix of income (bond-type) securities; and, where appropriate, alternatives such as market-neutral, commodity, or currency investments.
We are an independent advisory firm and operate by fee only. We strive
- To preserve and enhance the long-term financial security of our clients with prudent investment counsel and asset management.
- To provide objective, unbiased advice, and personalized service.
- When asked, to assist clients in meeting their financial management needs in
areas such as taxation, estate planning, insurance, real estate, or charitable
giving — via referral to select professionals not affiliated with this firm.
Saving and investing for retirement are increasingly important, with employer-sponsored pension plans shrinking or phased out —and employer 401(k)-type plans being reduced or eliminated.
It is a challenge to preserve retirement savings, and not invest so conservatively that inflation erodes the purchasing power of those savings over time.
The approach we recommend for tax-sheltered retirement investment accounts is to
- Begin with a target portfolio allocation (percentage split) between equity securities and income securities, taking into account financial resources, tolerance for risk, and expected number of working years to retirement.
- Rebalance the portfolio annually to the target percentage split between equity and income securities, to maintain the intended level of risk exposure.
- Periodically, perhaps every five years, increase the target percentage allocation to income securities, to preserve capital and to reduce the risk exposure from equities as time goes on.
Annually rebalancing a portfolio and periodically increasing its percentage allocation to income securities, demand a discipline that many investors will not achieve on their own.
The recommended approach for taxable investment accounts is to
- Start with a target split between equity and income.
- Periodically realize capital gains from equity securities.
- Invest those gains in income securities.
For most investors approaching retirement, and those who have already retired, it is very important to keep in mind that they will no longer have the income to recover from substantial investment losses — and that fact should impact their investment strategy for retirement savings.