We use a principles based investment philosophy. We focus on tried and true principles; diversification, long term goal oriented investing, risk management, fee management and tax mitigation. We work closely with clients to develop a goal oriented financial plan. This helps clients and advisors maintain a long-term view, targeting successful outcomes.
Long Term Goal Oriented Investing – There are countless studies suggesting how individual investor behavior gets in the way of achieving successful performance. It is often referred to as performance chasing, market timing etc. Basically investors get into and out of markets at the wrong times. Either through chasing the latest hot investment or jumping out of markets during market sell offs. We focus on eliminating this kind of behavior using three strategies.
1. Portfolio Diversification – Designing a well-diversified portfolio can reduce volatility, reducing the investor anxiety during market fluctuations.
2. State of the Art Risk Assessment – Using quantitative risk assessment tools, allows us to pinpoint an investors risk tolerance. Once a risk number is established, we are able to design individualized portfolios that match an investors risk tolerance. This helps to better manage client expectations.
3. The Financial Plan – Developing a detailed financial plan enables clients to invest with goals in mind. This reduces the tendency to measure short-term performance based on a snapshot in time and focus more on achieving long-term goals identified within the plan.
Portfolio Management – We aim to reduce investment costs, using portfolios designed around a mix of low cost ETF’s and Mutual Funds. We only pay the higher cost of active management where we feel it is warranted. Individual portfolios are designed around each plans specific Risk Number. Portfolios are built using both quantitative and qualitative screens. We screen and monitor, historical performance, costs, fund management, modern portfolio theory metrics and independent third party ratings and rankings. Once a portfolio is implemented, it is actively monitored, to insure conformity to the investment policy statement. Each financial plan and portfolio is built upon an investment policy statement, so each client fully understands the process.
Tax Mitigation - Taxes can be a significant headwind to investor performance. While we do not offer specific tax advice, we work with clients and their other advisors in an effort to minimize tax burdens.
Important Investing Information: Not all investments and services mentioned are available in all states. Money Concepts registered representatives are restricted to conduct business only with residents of a state and/or jurisdiction for which they are properly registered. When investing from outside of the United States, you are subject to the securities and tax regulations governing your jurisdiction. Contact us directly for detailed information about investment regulations outside of the United States. Registered Representatives State License Disclosure
note: River Oak Partners, LLC is an independent firm and not affiliated with Money Concepts