A Registered Investment Advisor (RIA)
Why Choose Us?
Unlike most of the broker/dealers that you will encouter, we do not work on commission. So we will not “churn” your account to make commissions. Nor will we recommend mutual funds with up-front sales load that typically run 5%. Instead, we will work hand-in-hand with you to position your portfolio for the long-term.
We believe in the following four concepts which are paramount to creating and managing a successful portfolio.
Diversification – reduce risk by holding low-cost funds that contain a large variety of stocks and bonds.
Target Allocation – with the help of your advisor, set a mix of stocks and bonds so that when one zigs, the other zags. The mix should be consistent with your risk tolerance. A typical mix might be 60% stocks and 40% bonds.
Rebalancing – sell high and buy low to maintain your target allocation. This is probably the most difficult concept to practice with discipline without the help of an advisor. The idea is to periodically rebalance your portfolio by selling the funds that have done well and buying funds that have been beaten down in the market. In essence, you are taking some profits off the table and reinvesting them in areas of the market that could make a strong comeback.
Long-Term Investing – don’t react to the market like the rest of the herd of investors. Studies have shown that trying to time the market has actually diminished investors' returns when compared with long-term holding of quality investments.
Copyright 2014. Revised May 31, 2014
TabarGaul LLC