Capital Preservation, Diversification, and Methodology
Capital Preservation – Stop Loss orders are used to preserve capital in volatile markets. These orders are altered every 60 days or sooner, rising as the asset value increases. If positions decline in value significantly, they are sold automatically.
Diversification – Most investments are placed in Exchange Traded Funds (ETFs) that provide instant diversification of the broad market, and specific sectors such as financials, health care, emerging markets and dividend paying stocks.
- Investment portfolios are adjusted to the specific circumstances that each client has such as risk tolerance, retirement goals, and cash flow needs.
- Allocations are adjusted based upon a variety of factors such as market cycle, domestic and international economies, etc.
- We use ETFs because they provide low trading costs, low fees (generally 0.15-0.35%), tax efficiency and broad range of offerings. Typical mutual fund expense ratios are 0.75% – 1.75%.