The Simple Version
Investing is not gambling- this is the core tenet to our approach. Everyone loves to talk about their stock or investment that went up by 30%, but you probably won't hear much about their stock that dropped by 60%.
The truth is, the average investor’s returns are 2.9% per year*, which is less than half of the S&P500. Why so bad? We believe it’s because financial advisors and investors chase the short term, exciting returns, and don’t look for the long term, “boring success”, of slow and steady growth.
In a conversation between two of the wealthiest people in the world, Jeff Bezos and Warren Buffett, Bezos asked Buffett, “Your style of investing is so simple- why doesn’t everyone just copy you?” Buffett replied, “Because nobody wants to get rich slowly.”
At LifeGoal Investments we’ll look to create “boring success” for you, so you can confidently invest with us in an effort to create long term, slow and steady growth.
The Technical Version
Our portfolios start with Risk Parity at their foundation- it’s not always clear which part of the economic cycle tomorrow will bring, and therefore we believe our clients should remain strategically invested in assets that can perform across different parts of the economic cycle. Each of our portfolios will maintain a strategic exposure to stocks, bonds, commodities/crypto, inflation-linked securities- but will also have the latitude to tactically adjust when the market presents opportunities.
With Risk Parity as the foundation of our strategic allocation we use a Risk Premia overlay to determine our asset class and security selection.
All aspects of our process are executed on while we strive to optimize for trading costs, investment costs, and tax-aware returns.
LifeGoal Investments’ Favorite Quote: “Buy on the sound of cannons, sell on the sound of trumpet.” Rothschild, 1810
* J.P. Morgan. “Diversification and the average investor.” Guide to the Markets, U.S., 2Q 2021, as of March 31, 2021.