Financial Planning
Each client’s financial situation and goals are unique. We invest our time and energy getting to know each client before we invest their money. First, we identify realistic financial goals, and then we recommend a customized investment plan.
Risk Analysis
We identify each client’s risk tolerance to help ensure an appropriate strategy. In today’s dynamic marketplace, and considering inevitable unexpected life circumstance, we seek to both grow and protect our clients’ assets.
Portfolio Construction
We propose an investment model only after we understand each client’s circumstances, goals and risk profile, and have conducted extensive investment manager due diligence. Each client’s portfolio is designed specifically to help maximize returns while managing risk within the context of their specific situation and goals.
Rather than relying on futile forecasting or trying to outguess others, we draw information about expected returns from the market itself—letting the collective knowledge of its millions of buyers and sellers set security prices.
We believe there are two components that make up investment performance: Beta and Alpha
BETA is the risk of the overall stock market.
Accepting market beta means we should be rewarded with market like returns. We feel we can capture those market returns through a passive investment approach, similar to index fund investing, to support our baseline investment performance.
ALPHA is the excess return of an investment relative to a benchmark index.
We utilize a multi-dimensional approach to capture long-term alpha by tilting the holdings towards securities characteristics that have theoretical research supporting higher expected return over time and then let markets do what they do best—drive information into prices.
We call this Evidence Based Investing.
To implement this approach, we leverage relationships with John Hancock/Dimensional Fund Advisors, and Vanguard one of the largest and most exclusive money managers in the world along with some of the industry’s most respected ETF providers.
Why Evidence Based Investing?
Active management is often speculative, expensive and inconsistent at best.
Evidence Based Investing ignores world events and can grow out of balance creating exposure for devastating losses, particularly for short and immediate-term goals.
At Pinnacle Peak Wealth Management, we believe there is a better way rooted in an academic, data-driven approach and dedicated to tax- and fee-efficiency.
Tax Planning
Proactive tax planning is important both to help each client reach financial goals, and to minimize taxes as a result of investment performance and other financial activities.