Why be an investor?

We have found there are two principles regarding wealth management that pretty much trump all others; they are 1) achieving an after tax rate of return greater than inflation and managing risk, These two principles come together by observing that taking too much risk can jeopardize one’s ability to generate this stated rate of return and taking too little risk can means you come up short of achieving this rate of return.

We believe being an investor is critical to achieving an after tax rate of return greater than inflation as discussed in What Rate of Return. A key factor is also participating in the wealth creation process.

We understand that not everyone has the emotional make-up to achieve this mind set or belief system, but we are available to help you grasp these concepts and have a discussion of how this can make a financial difference in your future and the future of those you care about.

By advising clients for multiple decades and through multiple economic cycles we know firsthand the difference a long term perspective can have and the merits of planning and management. We also can make the observation that if you take too little risk you likely will not achieve enough return, correspondingly if you take too much risk you likely will not achieve enough return. This is the reason we are such steadfast proponents of risk management. (See our discussion on Portfolio Design Compared to Portfolio Management).

For a more in-depth dialogue on this subject we invite you to review What Am I?

We hope you find these concepts and discussion helpful in achieving your financial goals!