Your Focus May Be Unfocused

Return Drivers

Much of the financial news discusses stock picking, market timing or trying to select an actively managed mutual fund that will beat the returns of a comparable index fund.

We believe this focus on returns is misplaced.  Here’s why.

Don’t get us wrong.  Returns are important. But here’s what you may find surprising.

It’s actually pretty easy to generate returns that capture the performance of the stock and bond markets.  All we have to do is purchase low management fee index funds that track those indexes.

We can maximize the possibility of obtaining above-market returns by adjusting your portfolio to provide further exposure to certain factors. We follow the extensive academic research indicating certain factors (like size, value, momentum, and quality) have a likelihood of yielding higher returns, with some additional risk, over time.

Once you understand that investing is only one part of a much larger picture, you can start to identify other goals.

These goals are different for every client, but here are some common ones:

  • Don’t run out of money in retirement.
  • Insure to protect against disability or death.
  • Have an estate that’s in order upon death.
  • Provide for loved ones.
  • Leave a legacy that reflects our values.
  • Enrich our relationships with family and friends.

At the Danielson Group, our team can help you work confidently toward achieving your most valued goals.