The professional management of your investment portfolio is a key component in reaching your financial goals. By utilizing our experience and ongoing investment research, we’re able to help you achieve these goals.
Here are the steps in our process, including our overall philosophy on investing:
- The first step in our customized approach is to meet with you to get a clear understanding of your current financial situation. We will discuss your time horizon and also your overall financial objectives. Only after we have the information we need regarding your unique needs and investment preferences will we begin to create your personalized portfolio.
- Next we will develop an asset allocation that we believe is most likely to achieve your objectives. It is our belief that the proper allocation of assets will have far more influence on long-term portfolio results than the selection of the individual securities.
- We will rebalance your portfolio at least annually. Portfolio rebalancing is important because over time, as the portfolio’s investments produce different returns, the portfolio will likely drift from its target allocation. In addition, the process of rebalancing helps you reap the full rewards of diversification. By selling some of your winners, and buying more of the laggards, you’re able to protect your gains, and position the portfolio to benefit from fluctuations in the market’s favorites.
- We believe that investing for the long term is critical to investment success, because it allows the long-term characteristics of the asset classes to surface. Active trading and trying to time the purchase and sale of investments in an attempt to “beat the market” are unlikely to increase long-term investment results.
- We do not recommend purchasing individual stocks since only a very small percentage of asset managers have been successful at this approach over the long-term. Our managed portfolios generally include the lowest-cost investment types that will enable us to reach the desired asset allocation. This will typically include a variety of low-cost ETFs and no-load mutual funds. Our feeling is that funds with high annual fees have a substantial negative impact on the returns of a portfolio over time. And there is no evidence that funds with higher expenses achieve higher returns. In fact, the exact opposite is true.
- Another factor we always consider in the management of a portfolio is the tax impact. This is a cost that is often ignored by asset managers. We always evaluate the potential tax implications of any changes made to a portfolio. In addition, whenever possible, all investments earning regular income are placed in tax deferred accounts to save on taxes.
- Once your customized portfolio is in place, communication with you becomes a top priority. We encourage you to contact us whenever you have questions, ideas or thoughts regarding your investments.
Your portfolio will be managed personally by Robert “Andy” Anderson, the president and owner of Navigate Financial Advisors. Because Andy has chosen to limit his asset management service to a relatively small number of clients, he is able to give your portfolio the attention it deserves – including a daily review of each client’s portfolio. This is very unusual in an industry where the typical asset manager may be managing the investments of several hundred clients.