How We Invest

Every investor makes four critical policy decisions that drive their investment experience:Risk Allocation, Asset Allocation, Active Risk Policy and Cost/Tax Management. Most investors are familiar with these concepts. However, few investors or their advisors make all four explicitly, systematically, and consistently in both their financial plans and their investment portfolios. This creates unintended gaps or disconnections between what they plan and what they do. They may plan on the right things for them but end up not doing what they planned, reducing clarity and confidence.

Our process helps investors to make all four decisions explicit, systematic, and consistent in both their financial plans and their investment strategies. We help investors understand the impact of all four decisions on their life plans, so they can make these decisions explicitly and appropriately for their situations, thereby raising their comfort and confidence in knowing that they will stay on track. In short, through our framework, we help investors to do the right things and to do things right.

Investment Philosophy

There are many ways to make the journey from New York to San Francisco – plane, car, bike, train or boat – and many different stops along the way to consider. How you travel and the path you take depends on your goals for the trip and how you want to experience the journey. No matter how you choose to travel, you want the trip to be cost-effective, you want to avoid unnecessary risk, and you want to reach your destination.

The same is true for your life journey and your investments. Once you select your Risk Allocation, our straightforward 2×2 investment strategy framework helps you make informed and explicit decisions regarding your Asset Allocation Policy and your Active Risk Policy. We then capture those decisions consistently in both your financial plan and investment strategy.

Strategic 2×2 Approach

For all 16 strategy combinations below, we have structured and made available to you investment strategies that are goals-connected, cost-risk-managed and cost-effective. Through our modeling techniques and algorithms, we connect these strategies to your financial plan through a robust capital markets and active risk assumptions framework.

We believe managing investment cost is a key determinant of success. We offer multiple passive strategies to help you minimize costs while matching your preferences. If you have a preference for strategies that have active elements, we provide a framework for the prudent use of active management. We capture the additional cost and active risk of these strategies relative to the potential for extra return in both the portfolio design and your financial plan.
Chart presented for illustration purposes only. Individual results may vary.

Quantitatively Pinpoint Risk

We use patented Risk Number™ technology to objectively calculate our investor’s true risk tolerance utilizing a scientific framework that won the Nobel Prize for Economics.
No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.