Our strategy is to utilize time tested methods to help clients achieve their financial goals. Risk management is very important to us. We are not looking to be on the bleeding edge of a new financial product nor are we trying to significantly overweight one idea at the expense of another.
Tax sensitivity is present in everything we do. After all, it is not about what you make, it is about what you keep. For example, we help clients determine which accounts to pull funds from in retirement. In most cases it makes sense to defer distributions from Traditional IRA or 401k plans for as long as possible to avoid ordinary income tax. In other cases, we recommend giving consideration to the timing and character of the income.
One of the methods we utilize for investment portfolios is prudent asset allocation. Many studies have proven that over 90% of an investor’s return comes from having exposure to major asset classes (such as large U.S. company stocks or short term bonds). Less than 10% of returns can be traced to specific security selection or market timing. Therefore, we focus on properly diversifying our portfolios across many asset classes and using investment vehicles that provide broad exposure to each market sector.
We utilize various strategic partners to help in our service delivery. One of those is Dimensional Fund Advisors. DFA utilizes an investment process based on clearly identified, historical trends that can be applied to portfolios moving forward to improve investment returns. The DFA philosophy is consistent with Altamont in that we both focus on proven methods to help ensure our clients’ financial success. For more information on DFA and our other partners, please visit the Strategic Partners section of our website.