Investment Mangement Process

Does your portfolio align with your goals and the economy?
We believe it can. Building an investment portfolio is more than just diversifying across different asset classes. We believe your investment selection should be a repeatable process that aids you throughout life’s ups and downs.

Our Investment Process

Set SMART Goals

We start by taking the time to know your personal financial goals. Setting financial goals can be tricky, but one thing that we’ve found is that goals should be SMART—specific, measurable, attainable, relevant, and time-bound. Since goals need to be measured, the returns of your portfolio matter. For example, estimating retirement on a 10% return and only achieving 7% would likely mean you’ll have to retire later or invest more to achieve your goal. So, in step 1, we evaluate your goals and set a target return that needs to be met to achieve this goal.

Evaluate the Economy

Now that we know the return necessary to achieve your goal, we need to look for investments to achieve those returns. However, before we choose investments, we need to understand how investments and the economy align.

Our research and guidance focus on Economic Growth and Inflation in the economy. Knowing these two variables can help us understand how the economy is doing and, more importantly, how it’s changing.

Security Selection

Separating the economic outcomes into four sections, as shown below, can help determine what investments you should be looking for. For example, if economic growth and inflation are increasing, you would want to hold investments that historically perform well for that economic environment. Aligning your portfolio to the economy also means your portfolio should change. We believe you should buy and hold investments for the long term. However, we also think those investments should align with the changing economy.

After completing our process, you can confidently construct a portfolio tailored to your specific goals while simultaneously aligning with the economy. As advisors, economists, and university instructors, our job is to help you navigate both the business cycle and life cycle to keep your financial goals on track! Book a consultation with us today!