All of our investment advisory relationships begin with the creation of an Investment Policy Statement (IPS). This document defines the investment objectives and establishes target allocations for stocks, bonds and cash in the portfolio. These targets are based on each client’s defined goals and tolerance for fluctuation in market returns.
Portfolio construction starts by identifying the best locations for different assets. For example, tax inefficient income-producing assets (bonds, real estate investment trusts) are typically best placed in tax-deferred accounts. Holdings with the highest expected returns may be best suited for Roth IRAs and investments that don’t distribute much income or dividends may make more sense in taxable accounts.
Our recommended investment strategies typically include a globally diversified mix of mutual funds and exchange-traded funds. We use investments from firms like Dimensional Funds, PIMCO, Vanguard, iShares, Schwab, T. Rowe Price and other specialty money managers.
Always, we seek to manage investment portfolios that accommodate for clients’ objectives, risk-and-return tradeoffs, tax efficiencies, and cost effectiveness.