Investment Philosophy
We believe that investing doesn’t need to be complicated, time consuming or expensive.
At Approachable Financial Planning we can provide specific investment advice in order for you to self-manage your assets based on your desired risk level or point you to a robo-advisor to assist you. Regardless of the option you choose, our philosophy is the same:
We believe that a diversified portfolio …
One with various asset classes (domestic stock, international stock, bonds) that earn the highest return for the least risk
With an investment mix …
The mix of different asset classes (stock, bonds, cash) you hold is a personal choice. You may have heard 60/40 or 50/50 (% stock/ % bonds). We can help you determine what is most appropriate for you!
Aligned with your goals …
YOUR vision of the future that you plan and commit to achieve based on your desired timeline
And tolerance for risk …
The amount of variability you can handle without losing sleep at night. We will help you determine what risk vs. reward balance you are comfortable with.
Along with a long-term strategy…
Buying securities and holding them for a long period of time regardless of changes in the market. Feeling comfortable with the amount of risk you are holding makes it more likely that you will continue to hold the securities during a market downturn.
Holding low-cost…
Every mutual fund or exchange traded fund (ETF) has what’s called an “internal expense ratio.” This is the amount charged by the fund company for managing the fund. Internal expense ratios vary widely and can affect your long term investment returns.
Index funds…
An investing strategy that attempts to generate similar returns to the broad market index. Instead of trying to beat the market, as few investors have been able to consistently do over a long-term basis, index or passive investing is all about matching the market’s performance using mutual funds and ETFs with low expense ratios.