Why We’re Here
Our firm, Capital, exists to deliver effective outcomes for our clients. We measure success in this regard relative to each client’s investment objectives.
Helping to identify, understand, and more importantly, commit to long-term objectives is critical to the success of our client relationships. To facilitate the process, some of the more common factors we evaluate together and then monitor continuously relate to:
- Time horizon
- Risk tolerance
- Income needs
- Estate planning
- Charitable gifting
- Tax considerations
Establishing the initial investment objectives is only the beginning. For some investors, life changing events may warrant reasonable adjustments to their investment plans. For over 30 years, we have helped clients steer their portfolios through changes in employment, marital status, legal disputes, windfall gains, and more.
As stewards of their investment assets, we work with our clients to make adjustments when necessary while helping them preserve their long-term investment goals.
Investing is often compared to a journey. While most long-term investors understand this, what is often underappreciated is the importance of the investment ride along the way. The link here, provides a demonstration of just how important the nature of the ride along the way may be in the process of attaining an investor’s objectives.
Shift, Don’t Switch
Studies have shown that asset mix – the amount of money allocated to stocks and bonds – is the primary determinant of investment returns in a portfolio over time. So it stands to reason that getting the mix dialed into each client’s comfort zone from the beginning of the relationship and then making reasonable adjustments when appropriate are both critical factors in driving the effectiveness of outcomes.
The concept of reasonable adjustments is an important one. Studies show that in reality many investors fail to capture the publicly posted returns of their investment managers because they switch styles and strategies at just the wrong time. Others have shown that changes in style and strategies can cost more than the management fees they paid.
Commitment to long-term objectives, continuous monitoring, and reasonable adjustments when and if necessary are ways we believe we can maximize the probability of our mutual success.
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