Value Added IndexingSM
Investment approaches fall into two major categories - active and passive.
Active managers engage in picking individual securities and timing their investments in hopes of beating the broad market averages. A passive (or index) investing approach looks to match the return of a particular area of the capital markets by holding all, or substantially all of the securities within the desired area.
Which is more effective?
Both research and experience provide clear evidence: passive investing wins. The efforts of professional money managers to “beat-the-market” are overwhelmingly negative. In every asset class, the only consistently superior performer is the market itself. Additional benefits of passive investing are lower costs, broader diversification, transparency, predictability, and higher tax-efficiency. That is why passive, market-tracking funds form the foundation of our approach.
Our approach goes well beyond putting together portfolios of index funds. Value Added IndexingSM means using specialized passive and index-related portfolios as part of a comprehensive solution to meet long-term goals.
The "value added" includes:
- Ongoing financial advice and counsel
- A customized Financial Goal Plan designed to achieve long-term goals
- Our Family CFO Checklist
- Cash flow and liquidity management
- Review of "outside" portfolios such as 401(k)s
- Implementing college savings and 529 plans
- Continuous monitoring
- Coordination with other professional advisors
- Tax trading
- Access to specialized, institutional passive portfolios
Value Added IndexingSM offers a disciplined investment experience based on sound research and planning rather than predictions, emotions or trends. The result is confidence and peace of mind that come from knowing you are on track to meet your long-term goals.