Our investment philosophy is straight-forward, we believe in Asset Allocation, Diversification, and Rebalancing (ADR). The most critical component of the investment process is allocating investments into different asset classes that have traditionally behaved differently in various market conditions. Studies have shown that asset allocation accounts for 93.6% of a portfolio's return1. However, it is also vital to diversify investments within asset classes. Investing in many companies rather than one reduces unsystematic risk associated with individual companies. Finally, it is very important to rebalance your portfolio on a regular basis. Rebalancing keeps the objectives and risk profile of your portfolio on track while striving to buy low and sell high.
We further believe that in today's environment it is critical for investors to have one advisor who is knowledgeable about their complete financial and tax situation2. As a Personal Financial Specialist (PFS) I possess the skills necessary to offer both sound tax and investment advice. To attain the PFS credential, a candidate must hold an unrevoked CPA license, fulfill 3,000 hours of personal financial planning business experience, complete 75 hours of personal financial CPE credits, pass a comprehensive financial planning exam and be an active member of the AICPA.
1 Source Gary P. Brinson, L. Randolph, and Gilbert Beebower, "Determinants of Portfolio Performance, Financial Analysts Journal, January/February 1995. Asset allocation does not assure or guarantee portfolio performance and cannot eliminate the risk of investment losses.
2 Investment and financial planning services are offered by Edward B. Krupa through his affiliation with HD Vest.