Rules of Financial Engagement

Investing

While we pride ourselves in our expertise and experience when it comes to wealth management, we thought we’d share some of our knowledge with you readers. The basic tenets of reaching one’s financial goals include:

  • Choose an asset allocation that’s right for your own goals and risk tolerance.
  • Diversify your investments as broadly as possible.
  • Be aware of costs, including fees and commissions.
  • Stay disciplined; make changes in your plan only when your needs or circumstances change.

Without a plan, financial success would be difficult to achieve. Few people can do this on their own and that brings us to the reason that WealthPoint Advisors was formed. We bring a relationship of openness and trust to the investing and wealth accumulation process. We are proud of our independence. As a fee‐only advisor, our goals are aligned with the client’s goals; we have an incentive to offer the best financial counsel possible. What WealthPoint Advisors adds to the planning and accumulation process is a combination of both the science and art of investing.

THE SCIENCE

Our association with Dimensional Fund Advisors has assisted us in the disciplined and scientific process of examining the financial market for an efficient and predictable approach to investing in a cost-effective manner. Academic research done primarily at the University of Chicago has shown that small company stocks have a higher expected return than large company stocks, and lower‐priced “value” stocks have a higher expected return than higher‐priced “growth” stocks. The degree to which a portfolio is exposed to these stock factors is a key determinant in long term return. It has also proven that broad global diversification will reduce portfolio risk.

THE ART

The art of investing refers to the judgment and skill needed by the planner to implement the science. Just by the nature of markets, there is lot of noise and distraction to get the investor off course. The art to being a good advisor is in explaining and implementing the plan in a way the investor understands and is comfortable with the actions taken.

The bridge between the science of capital markets and the art of investing at WealthPoint Advisors is flexibility. Our experience in the field of investment management helps us to engineer portfolios with a measured and efficient exposure to risk and return factor a cost effective manner.

About the Author: Michael Skehan

Michael Skehan, CPA, PFS, Senior Advisor is a well-known industry leader who has been recognized for his outstanding contributions both by his peers and community. Skehan was with RJ Pile for 44 years prior to retiring as managing partner to join WealthPoint Advisors LLC.