Our Investment Process
Your investment team handles the investing, while your dedicated financial planner does the planning
– so you can focus on your goals and happiness.
The Diversified Investment Process
Goal-Based Investing
First, we take into account your goals, risk tolerance and timing. Then, we assess your risk/reward scenario and align your goals with what makes you happy. Diversification
We diversify your money in asset classes and within money managers. We also diversify within active and passive investment solutions. Tax Savvy
Taxes are important, and we manage your money to enhance after-tax returns with an integrated tax management coordinator. Risk & Reward
The continual re-balance of your accounts to their target allocation, and period risk assessments, ensure that we’re tracking your risk and rewards to meet your goals. Constant Monitoring
We diligently monitor our accounts across thousands of investment options to ensure that you’re in the best investments to reach your financial goals. Education & Communication
We’re transparent about where your money is, and communicate frequently to educate you on how we manage your assets, and the state of the market in general.Investor Behavior
A 2020 Dalbar study found that over a 20 year period, the average investor performed worse than the S&P.
Why?
Because of investor behavior.
Over-Confidence
The SEC states that over-confidence, or feeling too confident in your investment decisions, is a leading factor in making investment mistakes. Over-confidence also leads to falling for investment schemes, according to the SEC.
Noise Trading
Noise trading is when investors get hyped up by news and rumors surrounding an investment, and make snap decisions that may not be financially sound. This leads to over-reaction and volatility.
Under Diversification
According to the SEC, the average investor only holds 3-4 stocks, which is a vastly under diversified portfolio. Having all of your assets in one type or class of stock is a risky move that many investors make.Behaviors are sourced from the SEC.
How can you fix investor behavior?
By hiring an unbiased professional.
Your investments are handled by our investment committee, lead by our CIO, Mike Horwath. Our financial advisors are all CFP®s (certified financial planners) – experts to guide your financial plan. As a company, we’re a registered investment advisor and fiduciary, which means we’re obligated to put your best interest first. We’re held to a high standard by the SEC and state regulatory administrators and we take that responsibility seriously.
Managing your assets on your own leaves you in a risky position. We’re unbiased and won’t make emotional, rash decisions that could result in mistakes. In 2020, Russell Investments reported a value of 5.2% over self-directed investing when you work with an advisor.
Working with an advisor doesn’t just result in a financial plan – the value of advice goes beyond financial planning and includes:
- asset location
- rebalancing
- behavioral coaching
- spend down strategies
- product selection
- tax management
- risk assessment
- and all of the services offered as an additional value by Diversified
We Also Provide
Same-Day Guarantee
MSG Stamp
Educational Webinars
Electronic Docu-Sign
Welcome Aboard Meetings
Estate Planning
Notary
Shredding Services
Strategic Tax Planning
Visit our Services page for a full list of services.
The Diversified Difference
Contact UsAre you ready for Lifelong Wealth?
Contact us today for a consultation.