Times have changed.
Research is now available that has changed the way we manage investments and technology has changed the way we do business. What this means for you is we can now apply the new research and risk-based investing (we explain, stay with us!) to your specific needs. The flexibility allows us to modify your portfolio as needed. What’s more, we have the ability to provide meaningful reports that give you insight into how we manage your money and how we make decisions on your portfolio. In addition to your customized reporting, we hope you’ll take advantage of our Investment Management Blog where we share insights into the market and how it affects you as well as talk about balancing living now with saving for retirement in our Living Life In The Middle series.
But some things don’t change, and that’s our dedication to giving you a financial investment experience grounded in trust, personal connection, and expertise.
Traditional vs. Risk-based Investing
Let us explain more about how we have redesigned wealth management.
Traditional Method of Investing
Many investment firms and advisors, from stock brokers to corporate retirement plans or insurance companies, offer products and advice based on the traditional method: The Modern Portfolio Theory.
Simply defined, this theory states that optimal investment performance is based on a fixed percentage mix of stocks, bonds, and cash for varying risk tolerances. As an example, a 60 percent stock and 40 percent bond allocation is most commonly used for a moderate risk investor. The money manager’s job is to select the best investment options for each asset class and keep fully invested under most market conditions.
Inherently, strategies embracing this theory are based on the long-term average performance of investment assets and not risk. Therefore, whether risks are high or low, the composition of the clients’ portfolio does not change radically.
The Sampson Insight Advantage™: Risk-based Investing
We do it differently. Our investment strategy is more sensitive to current market risk. Because of that, we are able to act more dynamically.
If the risk/return ratio for a given investment asset is not favorable, we will not hold that asset in the portfolio. Such assets will be replaced with those with a more favorable risk return ratio. Because risk changes over time, the assets held in the portfolio must also change.
This approach is based upon Nobel Prize winning research and makes investment decisions based upon risk rather than long-term averages. Our goal is to out-perform a blended index appropriate for a client over a market cycle with significantly less risk.