A great investment manager (mutual fund, hedge fund, or stock/bond picker) can add considerable value to a portfolio. We read about these folks every day in the news (ever heard of Warren Buffett?). Over the long-term, however, a diversified portfolio of outstanding managers may add 1% (100 basis points) per annum when compared to their index counterparts. Unfortunately, this excess return (alpha) is pre-tax and often before fees. Yet, this is the “hope” that most investors hold on to (often to their own detriment). In contrast, by mapping out and continually adapting an appropriate wealth plan based on changes in your life rather than changes in the market; focusing on taxes and fee efficiency, and enforcing investor discipline we believe we can deliver quantum value when compared to an offering of only investment management.
What does “planning” mean?