Without the right investment management partner, investing can be a complicated process. Your money can be invested in stocks, bonds, mutual funds, ETF’s, real estate, commodities, international stocks, or any number of other asset classes. The seemingly endless options can overwhelm even the savviest investor.
Investment Management is Anchor’s core focus, and we spend a good deal of time and resources to build custom portfolios for your specific needs. We start by getting to know you and what you want to accomplish. We assess your financial needs, investment preferences, and risk tolerance. Then we build an investment portfolio specifically designed to give you the outcome you desire.
Anchor’s investment philosophy is based upon the fact that the United States’ legal, financial, and educational systems provide corporations the best environment in which to conduct business and prosper. Therefore, we focus on Large Cap US Equities that are growing their revenues, growing their dividends, and moving their stock price forward. The companies we invest in are household names with excellent management teams, global revenue streams, and keenly focused on long-term shareholder returns.
Successful investing is all about managing risk. Most people’s definition of risk is “how much can I lose in the short term?” While this assessment is understandable, it’s the wrong way to think about investing and can cause the average investor to be too conservative. An investor that tries not to lose in the short term will find it hard to accumulate wealth and secure a comfortable financial future. The correct way to look at risk is to ask yourself, “will I have the money I need to spend when I need to spend it?”
We find a good visualization for managing risk is the Three Buckets Philosophy. It works by dividing your investments as follows:
Examples: Household expenses, a new car in six months, or the down payment on a house in a year
Examples: College and vacation home savings, home improvements, income enhancement
Examples: Retirement savings, wealth creation
Perform a comprehensive risk assessment for each of your buckets using Riskalyze, a state-of-the-art risk analysis tool
Design and implement a tax minimization strategy for your entire portfolio
Construct a healthy portfolio for each bucket based on your short and long term goals
Perform ongoing reviews of each portfolio
Have ongoing conversations as market fluctuations occur
Hold annual meetings with you to review outcomes, changes, and future strategies