Articles

The Quiet Killer of Active Wealth Management: Style Shift

By Teresa Conley | November 11, 2018

We are often asked about active versus passive wealth management approaches. One question that can be confusing is that of style drift.  What is it? How can it affect my financial planning?

It’s no secret that we’re not big fans of the active management approach, in which a financial advisor or fund manager buys and sells positions in an effort to generate extra returns.  We not only believe this is ineffective; there is also scant evidence to support the notion that trying to beat the market works any better than blind luck.

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Why Diversify? Improve your Wealth Management Strategies

By Bruce Smith | September 12, 2018

Long before the days of investment management solutions, financial derivatives and modern portfolio theory, Sancho Panza -- Don Quixote's sidekick – wisely noted, “It is the part of a wise man to keep himself today for tomorrow and not to venture all his eggs in one basket.” Of course, Don didn’t take this sage advice – but you should.

Our clients often ask us how to diversify; while they understand the basic importance of not putting all of those eggs in the same basket, they’re just not sure how to go about it in the most effective manner. Here’s how to avoid diversification pitfalls and create a blueprint to evaluate your own portfolio.

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The Rational Investor - Why Diversification is a Means and Not an End

By Ron Ross | August 07, 2018

Clients often ask us for investment guidance about diversification – why is it so essential? How is it achieved? We are always glad when our clients bring up this important topic.  

It is so important - in fact, we’ve blogged about it before - because diversification is not only the cardinal rule of investing, but also the one rule most often violated.

Perhaps Shakespeare said it best in The Merchant of Venice:

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4 Things Your Wealth Management Advisor Wants You to Know

By Teresa Conley | November 22, 2016

When you have questions about investment planning or wealth management, it makes sense to visit your trusted wealth advisor. After all, they have specialized education, experience and knowledge about financial matters — that's what makes them experts. 

That said, there are a few things every savvy investor should understand about financial management, even before visiting an investment professional.

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Investment Planning: Why the Middle Isn't a Bad Place to Be

By Jeremy Sorci | November 10, 2016

When it comes to investment planning, you're encouraged to think big, to aim for the top. It's just like running a race, playing a game, or entering into a competition: Your goal should be to win... right?

It may be human nature to seek to obtain that number one position, but for investors, the concept of winning should take on a new meaning. Instead of focusing on sprinting to the finish line, a slow and steady approach may be the more rational choice.

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Financial Advisors Share Portfolio Design Tips

By Francoise Crandell | October 29, 2016

Why is asset allocation so important to investors? A propery allocated portfolio means that your money is spread across a range of investments. But not just any combination of assets will do; rather, a truly diversified portfolio includes assets from across multiple classes, all carefully chosen to reduce exposure to risk through low correlation. 

In other words, a well-allocated portfolio achieves the right combination of risk and return for your needs. 

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Why Imitating Investment Professionals Isn't Always a Good Idea

By Ginger Weber | September 17, 2016

There's no question that the financial media — and the so-called financial "gurus" that dominate the headlines — are great at drawing attention, getting ratings, and garnering fans. But blindly following the advice of these investment professionals, or duplicating their published investment strategies, doesn't always lead to desired results. 

Is there ever a good time to imitate the financial pundits you see on TV? There's certainly a long precedent for the practice of following the advice of well-known

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Strategic Financial Planning: Avoiding Mutual Funds' Hidden Costs

By Jeremy Sorci | July 01, 2016

Are mutual funds free to invest in? This question is more common than you might think. The answer, unfortunately, is no. 

It is understandable to assume that something only costs money if you actually see cash flowing out. For example, commissions or transaction costs can be clearly identified (or at least should be) on an account statement.

Therefore, investors often assume that when they purchase a mutual fund with no commissions or transaction costs reflected on their account statement, the purchase is

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The Rational Investor: What Does It Really Cost to Invest?

By Jeremy Sorci | June 07, 2016

Anyone who has invested has had understandable questions such as “What are my fees?” “What are my expenses?” and “What are my investments costing me?”

Answering these questions directly is difficult, due to the wide variety of terms, phrases and conditions that have been created by investment professionals and the financial industry, itself. Has the industry, as a whole, created this confusion intentionally? We think it is a very fair question. For example, some financial advisors would like you to believe that fees and expenses are the same thing. 

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Active Investing: Leave it Out of Your Financial Planning Process

By Ron Ross | March 17, 2014

It is not uncommon for investors to ask us about the alluring possibilities of active investing. They wonder if they should try to beat the market by picking "the best" stocks or by following certain money managers.  Here's why our wealth advisors would advise not to follow this tumultuous investment style.

We certainly understand why they might be curious about this wealth management strategy – after all, Wall Street and the financial media promote it at every turn.

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