Our approach is based on the work of Nobel Prize winning economists, not Wall Street marketers. According to modern capital market theory, your asset allocation decisions (stocks vs. bonds, foreign vs. domestic, large cap vs. small cap, etc.) are the most important factor in determining the risk/return results of your portfolio. Diversification across asset classes and geography helps to reduce portfolio volatility.
We add value in your investment management by focusing on areas we can control such as diversification, costs, and tax efficiency. We build highly diversified global portfolios of index mutual funds and exchange-traded funds (ETFs). We prefer to utilize low cost investments from Vanguard and Dimensional Fund Advisors (DFA), when they are the best in their asset class. Note that DFA funds are only available to institutional investors or through a select group of independent advisors. We are cognizant of all investment costs, from mutual fund expense ratios to trading commissions, and we work hard to minimize your costs. Finally, we carefully design your plan to consider where each investment should be held to maximize your after-tax returns. Our goal is to achieve strong after-tax, risk-adjusted long-term performance.
Unlike advisors at brokerage firms or insurance companies who are paid to sell specific products, we have no incentive to favor any particular investments. Your investments are held in your name by an established custodian, such as TD Ameritrade or Fidelity. The custodian offers online access and provides monthly statements documenting your account balances and all transactions.
We enjoy educating our clients on investment principles and the specifics of their own portfolio holdings so that you will understand what you own and why you own it. Importantly, unlike many advisors, Debbie’s personal funds are invested using the identical approach we use for our clients’ funds.