Disciplined Investment Strategies
We understand that managing your assets risk is just as important as growing them. That is why we have invested in resources that provide a broad range of investment products for both life planning and asset management.
What is Sustainable Investing?
Sustainable investing allows investors to align their portfolios with their personal values.The idea of sustainable investing is not new, and many investors relate the term to socially responsible investing (SRI), which is an investment strategy that excludes companies and industries on a basis of moral values (e.g. alcohol consumption, gambling). This type of strategy still exists, but it is important to note that sustainable investing has evolved beyond emphasizing exclusionary screening based on a narrow range of criteria. Today, greater emphasis is placed on which companies to include, rather than exclude, from a portfolio, giving rise to a range of complementary approaches that can be used to implement sustainable investment strategies.
How We Implement Sustainable Investing
The world of sustainable investing can be complex. We have done extensive research in this area and have constructed 3 balanced portfolios that consist of companies that meet the ESG criteria.
More about ESG Investing
The idea of investing in companies that are mindful of the impact their business practices has on the broader society is not new. But the term “ESG” came into wider use in recent years, as it defines a more rigorous way of evaluating companies’ standards for conducting business.
ESG now outlines a specific set of criteria that asset managers and investors can consider to identify companies that meet high standards for corporate responsibility and conscientious business practices. ESG is shorthand for:
Environmental issues that encompass how a company’s business practices affect natural resources, the climate, and other aspects of the environment.
Social standards, which cover a broad range of policies and the relationships that companies have with their employees, their customers, and the communities where they conduct business.
Governance practices, which relate to how a company manages itself and cover a range of business activities, including executive compensation, internal business controls, and the rights granted to shareholders.
Our goal is to maximize our clients' current income to preserve their principal. Going forward, we believe broad diversification will be crucial in pursuing this goal in the income markets.
For income seekers and bond investors, the last three decades have been quite rewarding with high-quality investments producing strong yields and competitive absolute returns. Like too many thirsty people going to the same watering hole for too long, eventually the well dries up. In this situation, the high demand has led to high prices and consequently low yields.
Since the high-quality income "well" is temporarily dried up (or in danger of drying up), the one option is to find another place to dig. Lifetime Wealth Strategies research has identified a wide range of investments, each with varying levels of income objectives, types of risks, and overall complexity that we use in building portfolios that seek to create income.
Some of the products we offer (through LPL Financial):
- Diversified bonds, U.S. & global
- Municipal bonds
- Traded and non-traded real estate investment trusts (REITs)
- Mortgage-backed securities
- Dividend stocks
- Structured products
- Preferred securities
- Business development companies
- Master Limited Partnerships (MLPs)
Tactical Asset Management
Our tactical equity portfolio uses a scoring system based on relative strength to look for asset classes or sectors that are exhibiting performance above an underlying benchmark. We use this information to shift investments from one asset class to another, in our attempt to either avoid trouble or seize emerging opportunities. This strategy is designed for times of higher volatility and is most suitable for clients that are concerned about downside risk of the markets.
Dimensional Fund Advisors
Dimensional Fund Advisors has long been recognized as one of the leaders in applying financial science to the practical world of investing. In 1981, Dimensional introduced innovative strategies that set a new standard for portfolio design.
Dimensional’s revolutionary approach is steeped in extensive academic research on the efficiency of capital markets and the range of forces driving financial outcomes. Dimensional believes:
- The markets are inherently efficient, and when left to a scientific approach, the total long-term returns tend to reward investors.
- Financial markets act as an ally when investors understand that investing isn’t about finding a loophole for a quick gain, but instead committing to a long-term strategy with diversification and risk/reward balance at its core.
ESG investing may be subject to greater volatility than ones that invest more broadly. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. No strategy assures success or protects against loss.
Tactical allocation may involve more frequent buying and selling of assets and will tend to generate higher transaction cost. Investors should consider the tax consequences of moving positions more frequently
Dimensional Fund Advisors and LPL Financial are separate entities.