Investment Management

Warren Buffet, one of the most successful investors of our time, has said, “Do not save what is left after spending, but spend what is left after saving.” However, he has also said, “No one has become rich simply by saving…money grows by proper planning.”

What can these teachings from Mr. Buffet teach us?

It is important to make a habit out of saving for the future but saving alone will not bring our future goals to fruition.  Whether around the corner or way down the road, we must invest our savings skillfully to realize the meaningful purpose for their money without taking on more risk than they should.

Think of good savings habits and skillful investing like building your dream home.  Your home needs a beautifully designed blueprint prepared by a master architect, but as good as the blueprint is, the home will not stand the test of time without quality materials, exceptional craftsmen to build the home and an even more talented foreman to monitor everything and make changes if necessary.  This is where Concordia comes in.

Although we pride ourselves with helping educate clients in the ways of prudent saving and forming other, important financial habits, it’s Concordia’s Investment Management service that helps clients grow, preserve and use their savings in the most efficient way possible to help them realize their meaningful purpose.

There are many facets to skillfully investing.  Here are a few of the many tenets we implement within our Investment Management:

Asset allocation is the primary factor in determining the variability of investment return a client will attain over the long-term. This means choosing the right amounts of equities, fixed income, alternatives and cash and sticking primarily to those amounts give us a good idea of what long term returns will look like. Another name for this concept is Modern Portfolio Theory (or MPT).

Depending on a multitude of factors including but not limited to the length of time an investor has to reach their goals, risk metrics that could hinder success over that time frame, and a bunch of different research, it may make sense over shorter-term periods of time to dynamically shift asset allocation to either take advantage of market opportunities or reduce foreseeable market risks. Another name for this is Dynamic Asset Allocation.

The universe of money managers, mutual funds, exchange-traded funds (or ETFs), index funds and other investment products is overwhelmingly large. Each type of investment has its place within an asset allocation, but selecting them should be determined in no specific order by the following:

  • Needs of the Client
  • Cost and Expenses
  • Market Efficiencies
  • Management and Ownership Structure
  • Trading and Turnover
  • Taxes
  • Depth of Staff Experience
  • Investment Thesis and Repeatability of Process

Picking the appropriate investments for asset allocation is only part of the equation. Monitoring the investments through a tested process helps to make sure the investments that are selected continue to be the appropriate investments for the portfolio and, ultimately, the client.

To accomplish these core tenets, Concordia needed to be an independent, fee-only firm with fiduciary responsibility to its clients and have the flexibility to choose from the entire universe of investments, money managers and custodians without any restrictions.

As such, Concordia has partnered with chartered financial analysts, consulting firms, technology providers and multiple custodians to enact our investment philosophy and have the firepower to manage and monitor on an ongoing basis for our clients.

Concordia Wealth Planning looks at finances from a surprisingly simple perspective...yours.