Narrows Glow by David Pettit
- Market Efficiency
We believe that financial markets generally operate efficiently, meaning that prices reflect all available information. - Investment Strategy
We think it’s essential to have low-cost and efficient exposure to various asset classes to meet your investment goals. However, simply buying a broad market index may not be the best way to build and preserve long-term wealth or optimize tax efficiency. - Opportunities in Inefficiency
There are certain areas of the market, such as small to mid-sized companies, international markets, and emerging markets, where we may at times see potential for better returns. In these areas, we believe selecting the right investment managers can significantly enhance outcomes for our clients. - Cost-Effective Strategies
For specific situations, like individual municipal bonds or concentrated stock positions, we believe that Separately Managed Accounts (SMAs) may provide added value that justifies their costs. - Investment Goals
Rather than trying to outperform the S&P 500, our focus should be on achieving returns that align with your personal goals while managing risk effectively. - Risk Awareness
It’s important to recognize that taking unnecessary risks can lead to poor outcomes, especially due to common behavioral biases like panic selling. - Diversification
We believe that including a small portion of quality alternative investments may enhance your portfolio’s diversification and yield. - Professional Guidance
Surrounding yourself with knowledgeable professionals, such as a qualified CPA and estate planning attorney, is crucial. We recommend choosing experts who specialize in your needs rather than those who are merely convenient. - Family Communication
If you are married, we encourage you to keep your spouse informed about your financial decisions. If not, ensure your successor trustees are up to date. - Family Meetings
When appropriate, consider hosting family meetings to discuss the significance of money to your family and any charitable interests you may have.
Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
Investing involve risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Be sure to contact a qualified professional regarding your particular situation before making any investment or withdrawal decision. Investments in municipal securities may not be appropriate for all investors, particularly those who do not stand to benefit from the tax status of the investment. Municipal bond interest is not subject to federal income tax but may be subject to AMT, state or local taxes.
We primarily offer fee-based advisory services charging a flat fee based on a client’s total assets under advisement. However, if deemed appropriate and in our client’s best interest, we also provide commissioned brokerage services. Though our financial advisor provides clients with great care and recommendations, advisors only have a legal fiduciary obligation to advisory clients. In a fee-based account, clients pay a quarterly fee, based on the level of assets in the account, for the services of a financial advisor as part of an advisory relationship. In deciding to pay a fee rather than commissions, clients should understand that the fee may be higher than a commission alternative during periods of lower trading. Advisory fees are in addition to the internal expenses charged by mutual funds and other investment company securities. To the extent that clients intend to hold these securities, the internal expenses should be included when evaluating the costs of a fee-based account. Clients should periodically re-evaluate whether the use of an asset-based fee continues to be appropriate in servicing their needs. A list of additional considerations, as well as the fee schedule, is available in the firm’s Form ADV Part 2 as well as the client agreement.
The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. Keep in mind that individuals cannot invest directly in any index.
Alternative investments involve substantial risks that may be greater than those associated with traditional investments and are not suitable for all investors. These risks include, but are not limited to: limited liquidity, tax considerations, incentive fee structures, potentially speculative investment strategies, and different regulatory and reporting requirements. Investors should only invest in alternative investments if they do not require a liquid investment and can bear the risk of substantial losses.
