Investment Strategy
Investment Strategy
Foundations of Investing
plan in mind.
allocation right.
Invest with Your Plan in Mind
While many believe the best investments are the path to success, that is just one piece of the puzzle. It is now accepted that a comprehensive and regularly monitored financial plan is equally, if not more, important than solid investments.
Investing must be executed with a goal in mind and appropriately managing risk. To accomplish this, we will work with you to develop a financial plan to be used as a guide for managing your investments. We then seek to deliver upon your goals and objectives outlined in your financial plan by balancing investment risks and returns.
Get Your Allocation Right
Best of Breed Investments
Our strategic partner is Dimensional Fund Advisors (DFA). They pioneered passive investing – maximizing potential returns while minimizing expenses.
Decades of research guide us in our investment strategies based on:
Passive investing wins. The high cost of administering an actively managed fund can cost you 10% - 30%1 of its possible return. The last credible research concluded that your chance of finding a proper outperforming fund was 160:12
Diversification is key to risk management. Our investment strategies protect against “all-your-eggs-in-one-basket” risks. Our investments will put you in 30 to 38 distinct asset classes, instantly diversifying you across thousands of companies around the globe.
Put your money where the returns are compensated. Risk = Returns is an age-old rule of finance. With Wellspring’s use of proprietary funds not available to the public, we put you in a position to maximize returns.
Lowering costs is a reliable way to increase returns. Such things as trading costs, taxes and management fees, to name a few, can sometimes exceed 1/3 of your returns. Consider this carefully: whether the fund goes up or down, an actively traded fund utilizing frequent buying and selling will take 1/3 of the potential returns away from the investor.
Put the above all together and you get the highest probability of the returns you need and deserve for a fulfilled life. More importantly, those returns give the highest confidence your written financial plan is achieved.
Be an Informed Investor
1. Dimensional Fund Advisors, “The Science of Investing,” 2011.
2. Barras, Laurent, and Wermers, Russ and Scaillet, O. – “False Discoveries in Mutual Fund Performance – Measuring Luck in Estimated Alphas,” Journal of Finance, February 2010.
3. Quote by Walt Kelly’s comic strip character, Pogo, and first used in a poster for Earth Day in 1970.
4. Swedroe, Larry E, “What Wall Street Doesn’t Want You To Know,” (2001, page 145).
Learn More About Wellspring
Wellspring offers a variety of financial services, including investing assistance. All of our advice is customized to your unique goals and circumstances.
