Recognition of Risk

An investment strategy must be based upon an understanding of the risk of loss of capital (market risk) and the risk of loss of purchasing power (inflation risk). Risks associated with an inordinate lack of liquidity and fluctuations in the cost of money must also be addressed. We believe it is important to minimize the volatility of the total portfolio.

Balance of Assets

Proper investment planning generally requires a balanced approach, with due consideration given to short and long term liquidity need, the blending of lower and higher risk strategies and the combination of income and growth oriented investments.

Total Return

In managing investments, we focus on total return; current income plus growth in value. If current income is needed to meet living expenses, those funds may be obtained either from investment income or from liquidating a portion of the corpus including growth. We believe that yield, while important, is only one component of the return on your investments and must not override other considerations.

Economic Restraints

We monitor current and anticipated economic cycles and macro-economic changes in order to allocate portions of investment assets into areas of future growth. We believe successful investment performance is primarily a function of proper asset allocation rather than timing.


There are no simple answers to investment decisions in our volatile economy. We believe diversification across a variety of investments is essential to balancing risk with adequate return.


Investment planning requires a disciplined approach. Short-term emotional decisions often defeat a well designed investment program. You must feel comfortable with a long-term investment strategy designed to achieve results over at least a five-year investment cycle. With an understanding of investor behavior born of our experience, we are able to make difficult decisions by adhering to a pre-designed portfolio strategy. We believe disciplined application of an investment strategy is the key to long term success.

Income Tax Considerations

Income tax considerations are an important component of investment planning. However, it is essential to recognize that economic return is the primary objective . Proper tax planning requires a long-term view of tax reduction and deferral rather than a "quick fix" at year-end. Moreover, tax consequences must sometimes take a back seat to prudent investment decision making. We believe that paying tax on investment gains is preferable to having no gains to tax.

Portfolio Design Process

The most important step in the portfolio design process is determining the timing and amount of capital required to meet your specific financial objectives. After creating your financial plan, the next important step is to determine the level of risk you are willing to tolerate in your investment portfolio. The level of risk, and the corresponding rate of return, must be realistic in today's economic environment and at the same time sufficient to achieve your goals.

In order to maximize the probability you will meet your goals, our bias is toward selecting the lowest level of risk necessary to meet these objectives.

Only after we have identified your goals, determined your required rate of return and balanced that with a realistic level of risk do we begin to select the appropriate mix of investments to create your portfolio.