I’m a fee-based investment advisor, and here’s what I offer to clients:
- Financial plans
- General financial consultations (on an hourly fee basis)
- Analysis of existing portfolios to determine diversification and risk temperament suitability
- Portfolio Management
- Socially conscious investment advice and portfolio management
The best word to describe my portfolio management approach is “strategic”. I believe that portfolio diversification will lead to the best investment outcomes.
I diversify my client portfolios among different types of securities called “asset classes”. These include:
- Stocks of large and small companies; American or foreign
- Government or corporate bonds
- Real estate purchased as securities through “real estate investment trusts” (REITS)
Market Timing, Mutual Funds, and Stock Picking
I make no attempt to buy or sell securities in client portfolios because I believe the stock or bond market is going up or going down. This is called “market timing.” Sometimes it works, but a lot of times, it doesn’t.
I believe that the best investment diversification is achieved by creating a portfolio of mutual funds (collections of stocks, bonds, REITS, commodities, etc.) and stocks. Mutual funds can be passively managed index funds or they can be actively managed. The stocks I pick can be of any market capitalization from “giant” to “micro” -caps.
Actively managed mutual funds rely on the judgment of well-trained managers or teams of managers backed by experts who research the companies considered for investment. I believe that actively managed funds provide better long-run investment outcomes for my clients.
I do not use hedge funds or derivatives in client portfolios, although I am not limited in their use. I have no obligation to any fund company to use their mutual funds or to use a certain account custodian.