Investment Philosophy

Efficient Market

FinSym has an investment philosophy grounded in Modern Portfolio Theory. Belief in efficient markets necessitates a structured evidenced based investment methodology. The rationale for our methodology is based upon the fact that:

  • The vast majority of actively managed mutual funds do not beat the index especially over long periods of time
  • It offers significantly lowers costs, and reduces the tax burden to the investor

Over the long term, high management fees and expenses can be a significant drag on wealth creation. The role of a financial advocate is to increase wealth and not to erode it.

Risk and Return Are Related

Risk and return are highly correlated; providing investors with investments that match their risk/return profile is a core tenet of FinSym Partners.

Asset Allocation

Another critical component to FinSym’s investment philosophy is appropriate asset allocation. To achieve the proper risk/return ratio, a portfolio must be diversified across multiple asset classes. Emphasizing asset allocation:

  • Helps to reduce portfolios overall risk
  • Can increase return for a given level of risk

FinSym builds portfolios predominantly with institutional-class index funds. Given a risk profile, returns can be maximized and costs are minimized using a customized mix of asset classes. It is also important that clients have exposure to fixed income products as they reduce overall risk and dampen the volatility of equities.

Tax Implications

Tax implications are a critical component of an overall financial plan. Reducing the tax burden while maintaining returns is an important. Many clients have both taxable and tax-deferred retirement accounts. Those asset classes least tax efficient are placed in the tax-deferred accounts to minimize the tax impact to the client.

Highly Structured Portfolios

By utilizing a structured form of investing, we are able to reduce costs, taxes and volatility.

Phone: 206-276-1774