Our investment philosophy is based on Nobel prize-winning economic research, comprehensive financial market data, and studies in investor psychology and behavior. Here are the key concepts you need to know:
No One Can Predict the Future. No One.
The big brokerage firms and the financial press would have you believe otherwise. They want you to think stock pricing is easy and that it works – as long as you use their research, read their articles or watch their shows. We do not gamble or speculate with your money by pretending we can predict which stock is going up or which mutual fund manager is going to outperform.
Capture Market Returns
You can’t consistently beat the market but with our approach you can make sure that you aren’t underperforming it. Remember it doesn’t matter if your broker went to Harvard or if he is quoted weekly in the Wall Street Journal. Research shows that highly-experienced, highly-compensated portfolio managers have a hard time beating the market year after year. And the few that do are no more likely to outperform the following years than the rest of the managers out there.
Risk & Return Are Related.
Markets can be chaotic, but over time a strong relationship between risk and reward has been shown. Academic research has identified certain risks as worth taking – that means they present potential for enhanced returns. Those risks are: investing in stocks instead of bonds, increasing exposure to small versus large stocks, and emphasizing value versus growth companies. Remember, there’s nothing wrong with risk…as long as you’re getting paid for it. Our goal is to expose your portfolio to risk where we expect to see enhanced returns over the long term and work to eliminate the rest.
Diversify, Diversify, Diversify
You’re familiar with the concept – don’t put all of your eggs in one basket. When it comes to investing, diversification helps protect against risk and is shown to reduce your portfolio’s sensitivity to market swings. At Lifelong Investment Management Services LLC, we diversify by combining multiple asset classes and investing in thousands of stocks in both domestic and international markets.
Investor Problems vs. Investment Problems
Emotional Investing – the frantic buy-and-sell pattern driven by panic, fear, and greed – jeopardizes your money and your future. Investing should be a rational process, but behavioral finance research has shown that the more emotional an event is, the less rational or sensible people tend to be. And nothing is more emotional than money, it represents our hopes, our dreams, and our security. We keep emotional investing in check by making sure that decisions are based on sound investment policy.
They Are Your Dreams. It’s Your Future. You Shouldn’t Do It Alone.
Because of the emotional component, investing can be overwhelming. You shouldn’t go at it alone. When it comes to investing, successful investors need someone to coach them through market ups and downs, allay their fears, and guide them through the decision-making process. We will keep you focused on your long-term goals and partner with you on the journey towards wealth and prosperity. Call today for your FREE Investor Awareness Guide 1-877-526-8727.