Like financial planning, investment management is personal.
Each person, family, or institution brings their own investment objectives and time frames to their portfolios.
At Anchor Wealth Advisors, we come alongside clients to help navigate their financial journeys. With the desire to bring peace of mind – whether markets are reaching new highs, near previous lows, or remaining relatively flat – we help clients invest their portfolios for their individual circumstances.
For each client a suitable, low-cost, globally diversified allocation is set based on their individual goals and time horizons. It’s our desire that clients would feel the comfort to delegate the day-to-day management to us, so they can focus on the other areas of life competing for their attention – careers, kids and grandkids, retirement.
We encourage our clients to maintain a long-term perspective with their investment portfolios.
The following are components of the Anchor Wealth Advisors Investment Philosophy:
Goals
Create clear investment goals
An appropriate investment goal should be measurable and attainable. Success should not depend on taking undue risk for attempted larger investment returns.
Defining goals clearly, and being realistic about ways to achieve them, can help protect investors from common mistakes that undermine their success.
Time Horizons
Determine reasonable time frames for cash flow needs
Short-term market movements are unpredictable. Near term cash flow needs should not be exposed to volatile investments. A long time horizon has historically reduced the volatility experienced by portfolios and is more appropriate for money that won’t be needed soon.
Determining the time horizon for investors goals can minimize unnecessary risk taking.
Diversification
Maintain a globally diversified asset allocation
A sound investment strategy starts with an asset allocation appropriate for the portfolio’s objective. The allocation should be built upon reasonable expectations for risk and returns and use diversified investments to avoid exposure to unnecessary risk.
Both asset allocation and diversification exist in tension. Because all investments involve risk, investors must manage the tension between volatility and potential reward through the choice of investment holdings.
Cost & Fees
Minimize cost
Markets are unpredictable but costs are known. The lower your costs, the more of the investment’s return you get to keep. And research suggests that lower-cost investments have tended to outperform higher-cost alternatives. Transaction fees and tax costs should also be considered in your portfolio. You can’t control the markets, however, you can control costs, transaction fees, and taxes.
Discipline
Maintain perspective and long-term discipline
Investing is emotional. In the face of market turmoil, some investors may find themselves making quick decisions or becoming frozen, unable to implement an investment strategy or rebalance a portfolio as needed. Discipline and a long-term perspective can help them remain committed to a long-term investment strategy through periods of market uncertainty.