INVEST FOR THE LONG TERM

Why is this?  What about stock picking?  What about market timing?  Hot tips?  Active management?

When it comes to deciding what to invest in, consider these points:

• Over 80% of the variation in your return will depend on what asset classes you are invested in (ie. what percent stocks, bonds, real estate) as opposed to which stocks, bonds etc.
• Less than 25% of actively managed funds beat their respective indices after expenses and taxes and there is no way to tell if the fund you own is in that 25% before the fact.
  

Clearly low-cost no-load index funds and broad-based exchange traded funds represent the smart choice for asset allocation.  Determining the correct allocation for your situation, goals, and capacity for risk is our main job.                                                                  

The essence of financial planning is matching available cash with expenses as they present themselves.  No one wants to be forced to sell an asset to meet an unexpected expense.  We address this issue in your financial plan in a number of ways.

• Each investor must have a solid cash cushion for emergency expenses to avoid disrupting their long-term investment plan should unforseen trouble hit.
• Proper insurance coverage should be in place to:

1. Protect the client's earning power via Life and LTD insurance - and -
2. Guard against large, unexpected expenses via Home, Auto, LTC and Liability insurance

• Maintaining asset allocation that avoids forced liquidation due to client fears or poor performance.
• For future generations, planning that minimizes the impact of the sudden imposition of estate taxes and probate fees.