The Core Portfolio’s goal is to earn a fair return, aiming to compound our money over time. Core, as the name suggests, is the center and majority of a client’s investment portfolio and is based on the Nobel prize-winning, Modern Portfolio Theory’s Tangency Portfolio. Fundamental to the Core Portfolio is global diversification. Executed correctly, diversification should reduce risk but not reduce return.
PUTTING CLIENTS' MONEY
The Conservative Portfolio aims to preserve purchasing power over time and match or beat inflation. During retirement, we advise between two to five years of projected withdrawals be allocated solely to preserve purchasing power. If a market crash occurs, funds will ideally remain intact. The Conservative Portfolio provides a way to fund a client's life without having to "sell low" during market turmoil.
The Aggressive Portfolio does use the DataDriven Process but is over-allocated to the world's risky assets. It is more aggressive in overweighting and underweighting investments based on valuation. Due to the power of diversification, our Aggressive Portfolio often remains lower risk than the S&P 500. However, our Aggressive Portfolio should not be used to meet the needs of a client who wants an extremely high-risk option.