| |
Fountain Strategies provides investment management services to clients wanting a long-term planning relationship. We assign equal importance to making money and not losing money. We assess your risk threshold and work to keep portfolio risk at or below that level. Our aim is not to beat the stock market but incorporate total market performance projections into a portfolio that balances risk against equities (stocks), fixed income (bonds) and cash equivalents (money market funds). Accordingly, we offer a three-pronged approach to managing your investment portfolio: Buy and Hold, Diversify Across Several Asset Classes, and Rebalance Your Portfolio. Learn more about our Investment Management strategy. |
|
|
| |
|
Buy and Hold is a passive long-term investment strategy incorporating financial market averages into the overall plan rather than actively trying to beat the market. The investor buys and holds stock for a long period of time and assumes, based on the company profile and historical data, there will be a good rate of return with minimal or acceptable risk despite market fluctuations. There are tax benefits as a long-term investment is taxes at a lower rate the short-terms. |
|
| |
|
A well-diversified portfolio reduces exposure to risk by investing in different asset classes: stocks, bonds and cash equivalents. Our strategy diversifies across twelve to sixteen asset classes, each representing a segment of the global market. The assets are carefully allocated between stocks and bonds appropriate to the desired level of risk. We recommend Dimensional Fund Advisors (DFA) for index-like, asset class-specific, no-load funds. |
|
| |
|
Rebalancing is the process of returning your portfolio to the mix of stocks, bonds and cash that conforms to your plan. It is an important part of effective risk management. We look to rebalance an investment portfolio if market changes cause a drift of ±3% from target percentages or asset allocation has become lopsided. Reviewing your portfolio from a rebalancing perspective should be done quarterly or if significant change has occurred to any of your asset classes.
The following graphic illustrates a sample Current and Target Portfolio Allocation Comparison: |
|
|
|
| |
From MoneyGuidePro Financial Planning SMARTware, © PIEtech, Inc. Used with permission.
|
We provide investment management services to clients wanting a long-term and ongoing planning relationship with Fountain Strategies. This arrangement is attractive to seasoned investors who no longer trade in the daily markets. It is also a valuable service for clients wanting to ensure they are investing at an appropriate level of risk. We work with clients to discuss, design, and implement their financial and investment plan then revisit goals periodically to track progress towards success. Investment management services involve a mutually agreed-upon annual retainer, paid quarterly in arrears. The relationship is non-binding and you may terminate it at any time. For more information about our retainer fee and billing process, read our Form ADV Part II or Contact Us.
To Fountain Strategies' Homepage or Services |
|
