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Financial Plan
We believe investment strategy should be driven by a customized financial plan. Only one measure of investment success matters: the success of your financial dreams. By rethinking risk in terms of meeting specific goals -- like retiring early or traveling the world -- rather than using mathematical risk tolerances alone, we are better able to establish what your needs are and create investment strategies that meet those needs.
Multiple Asset Class Discipline
We believe in using broadly-diversified multiple asset classes, recognizing that it is impossible to know future asset class winners and losers.
- We manage strategic long-term portfolios ranging from conservative to aggressive.
- In order to manage risk, we make tactical adjustments based on asset class valuations.
Equity Exposure
We believe in adequate equity-based investments to defend against rising prices (inflation).
Fixed-Income Asset Classes
We believe in using fixed-income asset classes in most portfolios in order to play “defense” and to expand our opportunities.
High-Trust Managers
We believe that when high-trust managers are identified, they should be afforded room to implement their investment approach using their best ideas.
Paying Attention to the Pattern of Returns and Volatility
We believe that relying on historical average returns is dangerous. In funding financial plans, the volatility and sequence of the returns is just as important, especially during the wealth distribution phase.
Asset Location is Key For Tax Efficiency
We believe that asset location between taxable and tax-deferred accounts matter. Those asset classes that are the most tax efficient should be owned by taxable accounts and those that are least tax efficient should be held in tax-deferred accounts.
Indifferent to Investment Vehicles
We believe in not being tied to any one investment vehicle. We recommend those vehicles that we have a high level of confidence in meeting your investment objectives. Currently, TandemGrowth recommends some combination of Individually Managed Accounts, Mutual Funds and Exchange Traded Index Funds.
Investor Behavior Affects Investment Success
We believe in basing investment decisions on rational thought processes rather than
emotion. Investor behavior can do more to influence success or failure than the
investments themselves. We take a long-term perspective, and believe that none
or very little of the short-term “market news” provides useful information to patient investors.
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