Our most important policy is that no client will invest in anything that
we do not own personally. Our investment and retirement income philosophy
is grounded on two fundamental principles – diversification and
Diversification is one of the keys to investment and retirement success
over time. The old adage of don’t put all your eggs in one basket
certainly applies to your investments and your retirement income. We believe
proper diversification includes a broad allocation to all asset classes
with a particular emphasis on large blue chip dividend paying companies.
These are the companies that make the goods, products and services that
you and the rest of the world need every day. While this never makes your
investments immune from decline, we believe that tomorrow the world will
wake up, brush their teeth, get dressed, get a cup of coffee, shower with
soap and shampoo, get gas in their cars and go about their normal routines
consuming products made by companies.
Second, as with anything in life, consistency plays a substantial role
in success over time. Consistency is particularly important when it comes
to one’s retirement income and investments because (depending on
this morning’s headlines) emotions can often play a role in one’s
financial decisions. These emotions usually take the form of either greed
or fear. Greed makes you want to invest in the thing that everybody is
talking about and fear causes you to react after the fact. It is these
emotions that can often undermine your long-term investment results. This
is not to say that reallocation is never warranted – quite the contrary.
However, such actions should be done in a careful and systematic manner
and not in reaction to current events.