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Investment Model

Our Investment Model is based on broad diversification, asset allocation, utilization of the expertise of numerous Portfolio Managers, and various financial tools that are suitable to help our clients pursue their Wealth Management goals and address their concerns. We believe each client is a unique individual with their own values, lifestyle, needs for income and/or growth, and their own psychology on market volatility.

Our model may be divided into three primary categories:

  1. Traditional portfolio of mutual funds, and Exchange Traded Funds and perhaps a few individual stocks.
  2. Preservation portfolio of variable annuities or index annuities, and possibly life insurance and possibly Long Term Care (LTC) insurance.
  3. Alternative portfolio of Non-Traded Real Estate Investment Trusts and Business Development Corporations for the purpose of incorporating “non-correlated assets”. Our maximum percentage of assets in the Alts is 20% of the overall portfolio.

We thoroughly discuss with each client the pros and cons, costs and benefits, restrictions and opportunities associated with each of these three categories. Whether we incorporate 1, 2 or all 3 of these categories into the overall Investment Model of each client depends on their unique values, goals, concerns and their decisions.

December 1, 2017

Diversification helps you spread risk throughout your portfolio, such that investments that underperform expectations might be balanced by others that have preferable performance. Diversification cannot ensure a profit or protect against a loss.

Correlation is a statistical measure of how two securities or assets move in relation to each other. Non-correlation means that different securities or asset types have performed in an unsynchronized manner. When returns on some asset types were declining, returns on others were gaining.