OUR INVESTMENT APPROACH PROMOTES
SAFETY IN A WORLD OF UNPREDICTABILITY
Strategic investment planning is at the core of any successful wealth management plan. Novi Wealth Partners works closely with each client to create an asset allocation strategy specific to the client's needs and objectives. We consider the following: return expectations, risk tolerance, income and liquidity needs, income tax situation, estate and wealth transfer planning, philanthropic intentions and legacy aspirations. These criteria will assist us in charting the course for designing a wealth plan appropriate for your goals.
After the investment strategy is drafted and approved by you, the plan becomes a guide, but is always a work in progress. We closely monitor the strategy for rebalancing opportunities to take advantage of movement in the market and improve your personal after tax return. Meeting with us regularly to keep us current with any changes in your lives will also help us keep your allocation relevant. To make sure you stay informed, we will send you quarterly performance reports that will help you understand where you stand financially and how you have performed against a related benchmark.
What Makes a Successful Investor?
The short answer is knowing when to let a conscientious, dependable fee-only expert partner with you to manage your wealth, someone who can give you the advantages of their experience and contacts and still preserve your wealth autonomy. The world is ever changing but the elements of a successful investment strategy remain the same; participate in the market at a level you can endure and control all the other factors in your life that will ensure the abundance you desire. From childhood, we are taught to be educated and attempt to get ahead. This is fine as a general axiom but it doesn't always translate well for the individual investor going it alone.
Avoiding the Pitfalls of Emotional Investing
Even with all the studies that have proven that active management cannot consistently outperform the market people continue to attempt to do so. Why? Is it fear and greed? Overconfidence in our ability to make investment decisions? Allowing our sentiments to control our investment choices? Behavioral investing is letting your emotions and behavior influencing your investment choices; believing you can beat the market. Little tricks we use to fool ourselves into thinking we are smarter than the professionals.
-Benjamin Graham, American Economist, Professional Investor, Columbia Business School Professor
-Daniel H. Kahneman, Co-recipient, 2002 Nobel Laureate in economics*
Strategic Asset Allocation
Asset allocation is the largest determinant of your portfolio's performance. How much you have invested in each asset class is more important than who is managing each asset class.
Tax-management is critical in maximizing portfolio returns. Asset Location preference is a tax minimization technique utilized by our firm. We recognize different types of investments have different tax consequences. Some have taxable interest income, while others primarily are taxed at capital gains rates. In addition, the timing of taxation varies by account type. All of these factors are taken into consideration when developing your investment plan.
Novi Wealth Partners works with our clients to ensure that Strategic Asset Allocation, Asset Location, and Logic--not emotion- form the foundation for investing your investment plan. It is reassuring to have wealth. It is even more assuring to be able to keep and grow your wealth.