Asset Allocation and Diversification
Investing would be easy if we could predict the future. But the reality is, we cannot, so we need to invest in a way that will help your portfolios stand the test of time. Research and experience tell us that the best way to invest involves spreading money across different types of investments. We start with the mix between stocks and bonds, and within both asset classes, we further diversify between large and small companies, US and Internationally based companies, and short-term liquid assets.
Risk Tolerance
We partner with Andes Wealth Technologies to use their proprietary, multi-dimensional risk tolerance test to get an accurate measure of our clients’ true risk tolerance. We use this assessment to structure their portfolio to fit our clients’ individual risk preferences.
Long-Term Focus
We do not try to “time the market.” Timing the market involves predicting when the markets are at their highest so investments can be sold. Conversely, when markets are down, timing tells us to start buying investments. While this would be great if we could predict the future, it is impossible to get it consistently right. A far better strategy is to invest among a wide range of investments and have the discipline of rebalancing portfolios.
Sound and Justifiable Approach
Investing can be emotional for some people. We pull the emotions from our decision making and instead rely on decades of academic research and empirical data produced from top universities and practitioners. Hot tips and the personality-driven ideas have no place in the well thought out portfolios that we manage.
Dimensional Funds
We build client portfolios primarily using funds managed by Dimensional Fund Advisors. Dimensional “believes that investors can have a successful investment experience without having to guess the market. The firm trusts market prices and applies a scientific, transparent, and process-driven investment approach to pursue higher expected returns.”
Dimensional, or DFA as it is commonly referred to, focuses on the various drivers, or factors, of return: the size of the company, the relative price of the security versus the company’s financial success, and how profitably a company is managed. In addition to focusing on factors of returns, DFA pays close attention to the governance of the companies of the stocks and bonds that it purchases. DFA takes well-known and respected academic research in the financial world, and implements those ideas, often partnering with the top academics who author the research. Their approach is based on solid scientific knowledge.
We can help you reach your goals!
For over twenty years, Summit Financial Partners has been helping individuals and families reach their financial goals and to enjoy the comfortable retirement lifestyle they dreamed of with our investment management.
Our offices are located just outside of Richmond in Glen Allen.
We proudly serve the City of Richmond, Charles City County, Chesterfield County, Goochland County, Hanover County, Henrico County, New Kent County, and Powhatan County.
We also serve clients across the country with fully virtual client service options.
