Investment Allocation, Selection & Management

It isn't easy to manage your investments yourself. Investment management requires discipline, knowledge, and ongoing monitoring. Diversification and risk management are essential. Without all of these qualities, it is very easy to make mistakes.

 

Investment Philosophy

Our approach to investments is based on the following beliefs.

  • As a fee-only investment advisory firm, it is our job to bring discipline to the investment process and to manage your expectations.
  • Financial markets are relatively efficient, so spending a lot of time and money searching for superior returns is counter-productive.
  • Investors tend to overestimate their risk tolerance. We help guide you to acceptable levels of risk.
  • We reduce overall portfolio risk by diversifying your portfolio across many asset classes, including international stocks and real estate.
  • Portfolios should use low cost index mutual funds, exchange-traded funds (ETFs), and other passive investments that track the return of global stock and bond markets. Active mutual funds are utilized only when an asset class lacks a passive investment vehicle.
  • We continually refine and update strategies and products when provided with compelling, substantive information.

 

Minimizing Risk and Eliminating Emotion

The MJM approach minimizes risk and eliminates emotion from the decision-making process. We also manage adverse tax consequences with the understanding there will be potential short-term volatility caused by market conditions. We enter into each client engagement with the same methodology:

  • We assess each individual’s or family’s risk tolerance, time horizon, investing experience, tax status, cash flow needs, and other factors necessary to develop a comprehensive investment plan.
  • We coordinate all of your existing holdings (taxable, tax-deferred, tax-free, and other investments) as well as unique benefit plans with our strategies.
  • We custom-design an Investment Policy Statement (IPS) for you that guides all of MJM’s investment actions.
  • Whenever your financial status or objectives change, we make appropriate adjustments to your IPS and investments.
  • We meet with you at appropriate intervals to review investment results and their contribution to your long-term plan

Learn more about Personal and Family Wealth Planning: