Investing Principles

PUT A PORTION OF YOUR PORTFOLIO WITH INDEPENDENT THINKERS WHO CAN ACT ON THEIR ANALYSIS

PUT A PORTION OF YOUR PORTFOLIO WITH INDEPENDENT THINKERS WHO CAN ACT ON THEIR ANALYSIS

Watch the related WEALTHTRACK episode.

LOOK FOR FIRMS WHERE MANAGERS INVEST CONSIDERABLE SUMS ALONGSIDE SHAREHOLDERS

LOOK FOR FIRMS WHERE MANAGERS INVEST CONSIDERABLE SUMS ALONGSIDE SHAREHOLDERS

• How much money portfolio managers have invested in their own funds is a key criteria used to judge funds
• Significant “skin in the game” is seen as important indicator of management commitment & responsibility
• SEC requires disclosure of managers’ investments in funds they manage

Information available:

• – Mutual fund’s Statement of Additional Information in prospectus
• – SEC’s electronic data gathering, analysis, and retrieval database (EDGAR)

Watch the related WEALTHTRACK episode.

PAY ATTENTION TO THE CULTURE OF THE PEOPLE AND FIRMS YOU INVEST WITH

PAY ATTENTION TO THE CULTURE OF THE PEOPLE AND
FIRMS YOU INVEST WITH

• Certified Financial Planner (CFP)
• Chartered Financial Analyst (CFA)
• Certified Investment Management Associate (CIMA)

Does the advisor:

• Understand & agree with your objectives?
• Pay attention to your comfort levels?
• Have a realistic & workable plan to achieve your goals?
• Have the same values & priorities?
• Emphasize long-term outcomes & investments?

Watch the related WEALTHTRACK episode.

INVEST WITH FUNDS AND FIRMS THAT ARE COMMITTED TO PATIENT INVESTING

INVEST WITH FUNDS AND FIRMS THAT ARE COMMITTED TO PATIENT INVESTING

• Short-term oriented world
• Investors under pressure to fire underperforming funds and hire outperforming funds
• Most investment managers and firms don’t have patience, ability or desire to stick with long-term strategy

Watch the related WEALTHTRACK episode.

PAY ATTENTION TO THE FEDERAL RESERVE

PAY ATTENTION TO THE FEDERAL RESERVE

• U.S Central Bank is the most powerful financial institution in the world
• Fed increasingly open about its policies
• What Fed Chairman and Fed policy statements say matter
• Fed decisions affect financial markets and economic conditions globally
• Follow Fed policies on their website www.federalreserve.gov

Watch the related WEALTHTRACK episode.