wealth management

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Investment Strategy

Our Investment Strategy

At MoneyZen Wealth Management, Our Investment Strategy Is Driven By These Five Guiding Principles:

BehaviorGap.com illustrations used with permission

  1. Markets work. As messy as global markets may seem close-up, they’re simply an evolving exchange for rewarding those who have faith that human enterprise will endure, and are willing to invest accordingly. To capture market growth, you need only be there when it happens. This is called passive investing.
  2. Trying to beat the markets doesn’t work. Gaming the system – trying to predict winners and losers (stock picking), or reacting to trends (market timing) – is more likely to cause harm than good to your investments. The industry calls this active investing. We call it gambling.
  3. Costs and taxes matter.  Every dollar you spend on fees is one less dollar for you. Manage this readily controllable factor (in part by avoiding the added costs of active investing), and you’ve already made enormous strides toward your desired outcome. Smart and easy. Who can argue with that?
  4. Risk and return are related. Take on less market risk to preserve what you’ve already got. Tolerate more market risk to accumulate more wealth over time. In financial-speak, we take on risk within your stock/equity holdings and temper that risk with high-quality fixed income/bond holdings. It’s like your car’s brakes and accelerator. Risk/reward and reliability: Most investors need some of each!
  5. Diversification is key. Risk is expected to reward, but it’s also daunting when it appears. Diversifying your wealth across a variety of market risks helps you remain on course and in the driver’s seat, even when the road ahead is uncertain. Capturing the market takes staying power.

 

How Do We Do It?

MoneyZen applies its five points of investment clarity through these three simple steps:

  1. Simplicity: Building and managing your globally diversified portfolio to reflect your unique goals
  2. Abundance: Implementing with low-cost, tax-efficient, passively managed investment vehicles (stock funds, ETFs, high-quality bond funds and/or laddered individual bond portfolios)
  3. Freedom: Helping you stay the course with caring, personal guidance