Professional

Our Thoughts

 

Through our years of experience, we have seen business models come and go.  We believe this industry has been plagued with complacency, mostly through “broker” type relationships that talk a big game on deliverable but primarily deploy solutions that are centric only to products, the investments, or portfolios being managed.  The extent of true, comprehensive planning can lag.  To set ourselves apart from this oversaturated market, we have developed an approach that can offer more robust, custom planning solutions.  

 

Our Investment Approach

 

We utilize a “time weighted model” for our clients that will differ for each individual or family but creates a roadmap centered around when clients need access to their capital, how much they need, and from which bucket.

 

Behavior and emotion are so important to the long game because even the best portfolios in the world won’t hold up if investors aren’t disciplined. Confirmation bias, overconfidence and herd mentality can cause investors to over flock in certain sectors based on trends. A lot of times this can cause investors to hold those positions or be out of them for too long if they were fearful. Speculating on economic outlooks and trends can look attractive in the moment, but typically strays from sticking with a detailed plan. A long-term investing approach can, at times, be dry and boring. Our goal is not to speculate on the future. We do however, analyze the present and look through the context of the past.

 

Our team comes together four times a year to discuss our portfolios, and how to best merge them with the planning. Two pillars of our investment philosophies are both the portfolio design, and risk mitigation. We believe that less is more. Acting in a long-term approach, coupled with constant communication and updating helps to create better outcomes for our clients. Our approach is to evaluate investments in the equity and fixed income space that have low-cost, and low turnover. We look at key attributes such as risk, credit quality, manager tenure and ownership, down market performance, tax exposure, and sector concentration.

 

We will use both passive and active management to help balance each other out. This allows us to diversify through time and market environments vs solely diversifying across every asset class just because. We will rebalance aggressively when needed to help spring load the ride up.

 

Down markets typically have more volatility than upward trading markets. Strategies that tend to time this volatility typically end up overtrading, and underperforming.  We will make minor tilts to the portfolios during these times if needed, in order to manage the risk at hand. This approach isn’t meant to miss every swing in the market, it is meant to create an environment that is better suited for irrational mistakes. The approach was created with our wealth management clients in mind.

 

We also understand that even though we have this longer approach to investing, many individuals live in the short term, especially during periods of volatility and uncertainty. Our desire is to bring clients a feeling of confidence that they will realize their financial goals through the actions they are taking today.

Benjamin D Carter, CFP®
Wealth Management Advisor


Mooney Financial

 

To learn more about Northwestern Mutual Investment Services, LLC and its financial representatives, visit: FINRA BrokerCheck